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Accounting Solver

May 1st, 2008

HOW TO REDUCE WORKING CAPITAL REQUIREMENTS 1: Manage your accounts payable

Working Capital funds the cost of the labor & materials that go into the goods you sell or the services you render (i.e., your Cost of Goods Sold or Cost of Sales) and what you use to pay for salaries, rent, office supplies, etc (i.e., your operating expenses). In most businesses (specially where goods […]

By ren -- 6 comments

April 30th, 2008

APPROPRIATE SOURCE OF WORKING CAPITAL 3: Equity or Debt?

Working Capital funds the cost of the labor & materials that go into the goods you sell (or the services you render) and what you use to pay for salaries, rent, office supplies, etc (i.e., your operating expenses).
The basic structure of your Income Statement determines whether you should fund your Working Capital from Equity or […]

By ren -- 0 comments

April 29th, 2008

APPROPRIATE SOURCE OF WORKING CAPITAL 2: Equity or Debt?

Working Capital funds the cost of the labor & materials that go into the goods you sell (or the services you render) and what you use to pay for salaries, rent, office supplies, etc (i.e., your operating expenses).
If you do not put up enough money for Working Capital –whether from Equity or Debt, you […]

By ren -- 0 comments

April 28th, 2008

APPROPRIATE SOURCE OF WORKING CAPITAL 1: Equity or Debt?

Working Capital funds the cost of the labor & materials that go into the goods you sell (or the services you render) and what you use to pay for salaries, rent, office supplies, etc (i.e., your operating expenses).
After you are convinced that you have a marketable product or service and there is an accessible market […]

By ren -- 0 comments

April 24th, 2008

NATIONAL SMALL BUSINESS WEEK 4: Appropriate Working Capital for Small Businesses 2

If you do not put up enough money for Working Capital, you will be forced to incur debt or inordinately prolong accounts payable so that you get into trouble with your suppliers. Not having adequate Working Capital will place your business in an unsustainable cycle of debt.
After you have determined the amount you need […]

By ren -- 5 comments

April 23rd, 2008

NATIONAL SMALL BUSINESS WEEK 3: Appropriate Working Capital for Small Businesses 1

After you have determined that you have a marketable product or service and there is an accessible market sufficient to meet your profit objectives, you want to know how much money you need to put up for the business. Oftentimes, the focus is on the fixed assets; e.g., office improvement, production & office equipment, […]

By ren -- 0 comments

January 26th, 2008

SMALL BUSINESSES: How to determine Working Capital that will work 2

If you do not put up enough money for Working Capital, you will be forced to incur debt or inordinately prolong accounts payable so that you get into trouble with your suppliers. Not having adequate Working Capital will place your business in an unsustainable cycle of debt.
After you have determined the amount you need […]

By ren -- 1 comment

January 25th, 2008

SMALL BUSINESSES: How to determine Working Capital that will work 1

After you have determined that you have a marketable product or service and there is an accessible market sufficient to meet your profit objectives, you want to know how much money you need to put up for the business (Equity). Oftentimes, the focus is on the fixed assets; e.g., office improvement, production & office […]

By ren -- 1 comment