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have a more profound influence on a company s value, because the net working capital component of the cash flow equation will be larger On the flip side, a business with small working capital requirements will usually have small changes in net working capital, and consequently its net income will more closely approximate cash flow By reviewing the typical items that comprise net working capital, we will gain insight into which types of firms will tend to have high versus low net working capital The typical current assets are cash, accounts receivable, and inventory The typical current liabilities are accounts payable and other accrued liabilities Firms with high net working capital as a percentage of sales will be those with a high percentage of current assets to sales and a low percentage of current liabilities to sales Let s clarify which types of businesses will have high or low net working capital requirements: 1 Firms with high net profit margins will have a low percentage of costs and expenses to sales Therefore their required cash as a percentage of sales will tend to be low, which leads to a lower required net working capital as a percentage of sales, which means smaller increases in net working capital as the business grows This, in turn, raises the value of the business Of course, the converse is true Low margin firms will tend to have higher required net working capital as a percentage of sales, which leads to larger increases in net working capital as the business grows, and this decreases the value of the firm 2 Considering the effects of credit policies: a If your credit policies match those of your suppliers eg, both bill net 30 days then your receivables and payables have the same cycle, and the difference between the two will be based only on your gross profit margin5 Firms with high gross.



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If attackers gain physical access to a system, plus adequate unobserved time to boot it to another operating system, they can perform the sophisticated attack described by Petter Nordahl-Hagen at http://homeeunetno/~pnordahl/ntpasswd/ In a series of papers on this site, Petter documents several startling facts, including Password hashes can be injected into the SAM while offline, allowing someone to change the password of any user on the system Catch your breath Petter goes on to describe and provide the tools to create a Linux boot floppy that can be used to bootstrap an NT/2000 system, change the Administrator

The code begins by retrieving the node with the ID attribute "node4", which corresponds to the last <LI> tag Once you have a reference to that node, you clone it using a deep clone to make copies of the target node, as well as its child nodes

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5 It will also depend on how fast you pay your suppliers versus how fast your customers pay you If you pay your suppliers, on average, in 28 days, and your customers pay you in 32 days, that will tend to increase receivables and decrease payables, which increases required net working capital In other words, the actual deviation from the credit policies affect the size of net working capital, but usually not by much

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