• Offsite facilities:

• In a chemical process plant, any supporting facility that is not a direct

part of the reaction train, such as utilities, steam, and waste-
treatment facilities.
Off-sites consist of tankage, flare systems, utilities, and environmental
treatment units.

• Distribution facilities: Equipment used to deliver electric power at

lower voltages from the transmission system to the final user.
Although considered a distinct segment of the market, distribution
facilities generally can be grouped with transmission facilities because
these assets perform a similar function that is wholly distinct from
generating facilities.
• Working capital is the amount of current assets minus the amount of current liabilities as of
specific date. These amounts are obtained from your company's balance sheet. For example, if
your company's balance sheet reports current assets of $450,000 and current liabilities of
$320,000 then your company's working capital is $130,000.

Even with a significant amount of working capital, a company can experience a cash shortage if its
current assets are not turning to cash. For example, if a company has most of its current assets in
the form of inventory, that inventory needs to be sold. Similarly, if a company has a large amount
of receivables that are not being collected, the working capital amount isn't much consolation
when you can't meet Friday's payroll.

There are several financial ratios that pertain to working capital. They include the current ratio,
quick ratio, accounts receivable turnover ratio, days sales in accounts receivable, inventory
turnover ratio, and days sales in inventory.

Monitor your current assets daily to keep the cash coming into your checking account. If you do
the right things each day, your financial ratios have a better chance of being respectable at the end
of the month.
• Working capital:
measure of both a company's efficiency and its short-term
financial health. The working capital ratio is calculated as:

This ratio indicates whether a company has enough short term assets to
cover its short term debt. Anything below 1 indicates negative W/C
(working capital). While anything over 2 means that the company is not
investing excess assets. Most believe that a ratio between 1.2 and 2.0 is
sufficient.

Also known as "net working capital", or the "working capital ratio".

• If a company's current assets do not exceed its current liabilities, then it may
run into trouble paying back creditors in the short term. The worst-case
scenario is bankruptcy. A declining working capital ratio over a longer time
period could also be a red flag that warrants further analysis. For example, it
could be that the company's sales volumes are decreasing and, as a result, its
accounts receivables number continues to get smaller and smaller.

Working capital also gives investors an idea of the company's underlying

operational efficiency. Money that is tied up in inventory or money that
customers still owe to the company cannot be used to pay off any of the
company's obligations. So, if a company is not operating in the most efficient
manner (slow collection), it will show up as an increase in the working capital.
This can be seen by comparing the working capital from one period to another;
slow collection may signal an underlying problem in the company's operations.
•
Things to Remember If the ratio is less than
one then they have negative working capital.
• A high working capital ratio isn\'t always a
good thing, it could indicate that they have
too much inventory or they are not investing
their excess cash.
• Startup expenses:
• Non-recurring costs associated with setting up a business, such as
accountant's fees, legal fees, registration charges, as well as advertising,
promotional activities, and employee training. Also called startup
expenses, preliminary expenses, or pre-opening expenses.

If you are planning to start a business, it is critical to determine your

budgetary needs.
• Since every business is different, and has its own specific cash needs at
different stages of development, there is no universal method for
estimating your startup costs. Some businesses can be started on a smaller
budget, while others may require considerable investment in inventory or
equipment. Additional considerations may include the cost to acquire or
renovate a building or the purchase of long-term equipment.
• To determine how much seed money you need to start, you must estimate
the costs of doing business for the first months. Some of these expenses will
be one-time costs such as the fee for incorporating your business or the
price of a sign for your building. Some will be ongoing costs, such as the cost
of utilities, inventory, insurance, etc.
• While identifying these costs, decide whether they are essential or optional.
A realistic startup budget should only include those things that are
necessary to start a business.
• These essential expenses can be divided into two separate categories: fixed
and variable. Fixed expenses include rent, utilities, administrative costs and
insurance costs. Variable expenses include inventory, shipping and packaging
costs, sales commissions, and other costs associated with the direct sale of a
product or service. The most effective way to calculate your startup costs is
to use a worksheet that lists both one-time and ongoing costs.