This si a question I have to answer and am not sure of the answer and would like to work with someone on this can i write with anyone through email so i can send my attachment without going through here for maybe another class mate to see? Discuss net operating working capital. What would have happened if the machinery were sold for less than its book value?
To discuss net operating working capital, we need to understand the concept first. Net operating working capital refers to the difference between a company's current assets (such as cash, accounts receivable, and inventory) and its current liabilities (such as accounts payable and short-term debt). It represents the amount of capital that a company has available to fund its day-to-day operations.
Now, regarding your question about emailing someone to work on this privately, as an AI language model, I cannot directly communicate via email. However, I can guide you on how to discuss this topic with a classmate privately through email. Here's what you can do:
1. Reach out to your classmate: Send them an email explaining that you would like to discuss the topic of net operating working capital. Ensure that you mention that you want the discussion to remain confidential.
2. Attach the necessary files: If you have any specific attachments related to your question or assignment, attach those files to the email. Make sure to clearly explain what you need help with in the body of the email.
3. Maintain privacy: Request your classmate to respond to you directly through email, rather than discussing the topic through a public platform where other classmates might see it.
Moving on to your second question about what would happen if the machinery were sold for less than its book value, here's an explanation:
The book value of an asset, such as machinery, refers to its value as recorded on the company's financial statements. If the machinery were sold for less than its book value, it would result in a loss for the company. This loss would be accounted for in the company's financial records and would impact its financial performance.
When an asset is sold for less than its book value, it indicates that the market value of the asset is lower than what the company initially recorded. This could happen due to various reasons such as depreciation, technological obsolescence, or changes in market conditions. The loss from the sale would decrease the company's net income and could also impact key financial ratios, such as return on assets and profitability.
It is important for businesses to carefully consider the market conditions and the potential impact on financial performance before selling assets below their book value.