question archive What factors are likely to drive a firm’s outlays for new capital (such as plant, property and equipment) and for working capital (such as receivables and inventory)? What ratios would you use to help generate forecasts of these outlays?
What factors are likely to drive a firm’s outlays for new capital (such as plant, property and equipment) and for working capital (such as receivables and inventory)? What ratios would you use to help generate forecasts of these outlays?
Subject:ManagementPrice:2.87 Bought7
What factors are likely to drive a firm’s outlays for new capital (such as plant, property and equipment) and for working capital (such as receivables and inventory)? What ratios would you use to help generate forecasts of these outlays?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
Factor that likely to drive a firm’s outlay for new capital and for working capital are, first is their expectation for the growth of the Company, and second is the Company want to reduce potential competion by making investment in plant and property. The ratio that I would use to help generate forecast to these outlays are the ratio of plant to sales and the ratio of net working capital to sales.
