Month: March 2022

A positive working capital indicates a company has enough short-term assets to cover its liabilities. Conversely, a negative working capital may suggest potential liquidity issues. Assume, for example, that a manufacturer’s cost of goods sold (COGS) increases from 30% of sales to 45% of sales over three years. This is achieved by comparing the operating …

What Is A Comparative Balance Sheet? Comparative Balance Sheet Explained in Detail Read More »

This shows business owners how much amount is due and which accounts require immediate action. But that does not mean you give a free pass to all the pending payments. This is why it is critical to review your aged receivable balance and take action when needed. An accounts receivable (AR) aging report tells you …

What Is an Accounts Receivable A R Aging Report? Read More »