Working capital is the (current) assets and liabilities of a business enterprise that can be applied to its operation. Wal-Mart and Target stores share the same working capital for the fiscal year 2007. For January 2007 and August 2007 both Wal-Mart and Target have current assets of accounts receivable, inventory and cash. Inventory is defined as a list of items that are currently in stock. Accounts receivable, in Wal-Mart and Target stores perspective, are monies received for merchandise sold. In addition cash is a current asset and can also be seen as monies received from the merchandise and services provided by Wal-Mart and Target.
Current liabilities for Wal-Mart and Target are accounts payable and short-term debt. Liability is defined as a responsibility, debt or obligation owed to another party (Miller). Accounts payable is a liability that includes wages/salaries, and building expenses such as rent and utilities. Short-term debt can be described as fixtures and equipment along with monies that are owed by Target and Wal-Mart.
In opinion both Target and Wal-Mart working capital is most likely to remain the same throughout the upcoming years since the current assets and liabilities (operations) is usual in order to run a business.
Intermediaries and Financial Regulatory Bodies"A financial intermediary is an organization that raises money from investors and provides financing for individuals, companies, and other organizations" (Brealey, 2003, pg. 32). Some examples of intermediaries are mutual funds, pension funds, and financial institutions (Brealey, 2003). The functions of intermediaries include financing for business, the ability to turn an investment back into cash when need, and allowing investors and companies to reduce and reallocate risk (Brealey, 2003). State Street manages Target's trustees, 401K, and pension plans while Mellon Services is the transfer agent for direct stock purchase and dividend reinvestment (Target, 2007). Computershare provides dividend...