UOP FIN 571 Complete Week 3 UOP

Accounts payable (trade credit), bank loans, and commercial paper are common sources of short-term financing.
Accounts payable constituted about 35 percent of total current liabilities for all publicly traded manufacturing
firms. The buyer needs to figure out whether it makes financial sense to pay early and take advantage of the
discount or to wait and pay in full when the account is due.
Short-term bank loans accounted for about 20 percent of total current liabilities for all publicly traded
manufacturing firms. An informal line of credit is a verbal agreement between the firm and the bank, allowing
the firm to borrow up to an agreed-upon upper limit.
In exchange for providing the line of credit, a bank may require that the firm holds acompensating balance with
them.
What are some other sources of short-term financing used with this strategy?
FIN 571 Week 3 Individual Interpreting Financial Results NEW
Resource: Financial Statements for the company assigned by your instructor in Week 2.
Review the assigned company's financial statements from the past three years.
Calculate the financial ratios for the assigned company's financial statements, and then interpret those results
against company historical data as well as industry benchmarks:
Compare the financial ratios with each of the preceding three (3) years (e.g. 2014 with 2013; 2013 with
2012; and 2012 with 2011).
Compare the calculated financial ratios against the industry benchmarks for the industry of your
assigned company.
Write a 500 to 750 word summary of your analysis.
Show financial calculations where appropriate.
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FIN 571 Week 3 Learning Team Reflection NEW
Watch the "Concept Review Video: Working Capital Management" video located in theWileyPLUS Assignment:
Week 3 Videos Activity.
Discuss strategies these business owners used to manage their working capital.
Write a 350-700 word summary of your discussion.
Click the Assignment Files tab to submit your assignment.