Economics Homework Help

** This assignment is based off of kellogg, i have included their financial documents which will assist with answering the questions.

Overview

Working capital management is critical to an organization’s ability
to meet its short-term obligations. When proposing new projects or
investment ideas for corporations, it is critical to consider working
capital red flags such as excess credit use by the business or a low
cash balance. Managing such issues early on can help corporations
acquire a competitive advantage in the marketplace.

Prompt

Using the business you selected for Project Two, complete the
calculations for determining working capital, and describe their
relevance in assessing financial health.

Specifically, you must address the following rubric criteria:

• Financial Statement(s): Explain the various
  financial statement(s) needed to calculate a business’s working capital
  and how each financial statement is used. Provide examples to support
  your claims.

• Working Capital’s Role: Discuss how effective working capital management supports a healthy business.

• Working Capital Interpretation: Use the appropriate formula to calculate working capital, then discuss the business’s current financial liquidity position.
  • For example, does the business have sufficient working capital on
    hand to address bills to suppliers? Will there be potential cash inflow
    at the end of the year?

• Working Capital Management Direction: Discuss the current direction of the business regarding working capital management.
  • Keep in mind that financial statements reflect a specific moment or
    period of time and the value of the business’s working capital during
    that period. To get a better understanding of the direction in which a
    business is going, use the business’s balance sheets from Mergent Online
    to compare the business’s value today against its value from one year
    ago.

Guidelines for Submission

Your submission should be a 2 to 3-page Word document with 12-point
Times New Roman font, double spacing, and one-inch margins. Any sources
should be cited according to APA style.

Module Five Activity Rubric

Criteria

Proficient (100%)

Needs Improvement (70%)

Not Complete (0%)

Value

Financial Statement

Explains the various financial statement(s) needed to calculate a business’s working capital and how each statement is used

Shows progress toward

proficiency, but with errors or omissions; areas for improvement may

include explaining in more detail the various financial statement(s)

needed to calculate a business’s working capital and how each statement

is used

Does not attempt criterion

15

Working Capital’s Role

Discusses how effective working capital management supports a healthy business

Shows progress toward

proficiency, but with errors or omissions; areas for improvement may

include discussing in more detail how effective working capital

management supports a healthy business

Does not attempt criterion

20

Working Capital Interpretation

Uses the appropriate formula to calculate working capital and discusses the business’s current financial liquidity position

Shows progress toward

proficiency, but with errors or omissions; areas for improvement may

include discussing in more detail the business’s current financial

liquidity position or using the appropriate formula to calculate the

working capital

Does not attempt criterion

20

Working Capital Management Direction

Discusses the current direction of the business regarding working capital management

Shows progress toward

proficiency, but with errors or omissions; areas for improvement may

include discussing in more detail the current direction of the business

regarding working capital management

Does not attempt criterion

25

Articulation of Response

Clearly conveys meaning with correct

grammar, sentence structure, and spelling, demonstrating an

understanding of audience and purpose

Shows progress toward

proficiency, but with errors in grammar, sentence structure, and

spelling, negatively impacting readability

Submission has critical errors in grammar, sentence structure, and spelling, preventing understanding of ideas

20

Total:

100%