BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is not a method of estimating working capital requirements
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Regression Analysis Method
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Average Price Method
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Conventional Method
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Percentage of Sales Approach
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Explanation:
Detailed explanation-1: -Answer: Percentage of Sales Method: It is a traditional and simple method of determining the level of working capital and its components.
Detailed explanation-2: -Working capital estimates may be made on the basis of (i) As a % of net sales, (ii) As a % of total assets or fixed assets and (iii) operating cycle of the firm.
Detailed explanation-3: -The methods are: 1. Percentage of Sales Method 2. Regression Analysis Method 3. Operating Cycle Method.
There is 1 question to complete.