How Should the Income Earned by a Private College's Endowment

question 113

Essay

How should the income earned by a private college's endowment be classified?

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Definitions:

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating its short-term financial health and operational efficiency.

Net Fixed Assets

The value of a company's fixed assets, such as property and equipment, minus any accumulated depreciation.

Total Assets

Total assets comprise the sum of all assets, both current and non-current, owned by a company and recorded in the balance sheet.

Average Collection Period

The expected time a business collects payments from its customers for goods or services it has sold on credit terms.