Essay Examples on Conway School of Landscape Design

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George Train’s working Capital shall be Examined

After completing a mode train for his nephew sometime time shortly after World War I George Olieux began a small business of repairing model trains for individuals This later assisted in the growth of his business George Trains is now a Business that specializes in the sale repair and trading of model trains of all makes and models The organization is a family owned business that bases its business values on honesty fairness and integrity The company has a staff that is knowledgeable about model railroading alongside the various train models and other important Through this case study we shall examine George Train s business and working capital practices Working capital refers to the financial metric that ensures operating liquidity of a business organization firm and other governmental entities Working capital management is an important concept for business owners and managers of business to understand and today George Train’s working Capital shall be Examined and analyze to determine areas of needed improvement Working capital practices Business working capital is determined by dividing the current assets by current liabilities Jackson 2016 This information is highly important and enables owners and managers to be aware of short term efficiency as well as gain a full understanding of the business health as well as if the short time financial obligations can be met Jackson 2016 Working capital is the difference of an organizations current assets and liabilities determining the debt amount acquired in order to finance its assets The ratio gives an explanation if the company can be able to pay its short term debts through the current assets or not The company is sure of having problems of paying its loans short term if the current liabilities exceed the current assets John wanted to finance the inventory purchase for his shop he then borrowed loan from the bank Adding to this he also invests a given amount of personal equity in order to keep away from bankruptcy Potential pitfalls in George’s capital

2 pages | 660 words
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