Days Working Capital Is Equal To

question 37

Multiple Choice

Days working capital is equal to:

• A)days payables + days receivables - days inventory.
• B)days inventory + days receivables - days payables.
• C)days payables + days inventory + days receivables.
• D)none of the above

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Definitions:

Market Rate

The current price at which an asset or service can be bought or sold in the marketplace.

Present Value

The amount of money that, if invested today, would grow to a designated future amount. Discounted value of future cash flows.

Straight-Line Depreciation

Depreciation method in which the amount taken to depreciation expense each year is constant and equal to 1/n times the depreciable amount, where n is the depreciable life of the asset.