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amount of revenue. The current assets and current liability categories that most directly relate to sales are: accounts receivable monies owed to the company from customers; inventories monies used by the company to finance its products prior to their sale; and accounts payable monies owed by the company to other entities. We define working capital as accounts receivable plus inventory minus accounts payable: Working Capital [(Accounts Receivable Inventory) Accounts Payable]

B3 V=V(14) > 0 10 : 0

H.323 started in 1996 as H.320, an ITU-T standard for the transmission of multimedia content over ISDN. Its original goal was to connect LANbased multimedia systems to network-based multimedia systems. It defined a network architecture that included gatekeepers, which performed zone management and address conversion; endpoints, which were terminals and gateway devices; and multimedia control units, which served as bridges between multimedia types. H.323 has been rolled out in four phases. Phase one defined a threestage call setup process: a precall step, which performed user registration, connection admission, and exchange of status messages required for call setup; the actual call setup process, which used messages similar to ISDN s Q.931; and finally, a capability exchange stage, which established a logical communications channel between the communicating devices and identified conference management details. Phase two allowed for the use of Real-Time Transport Protocol (RTP) over ATM, which eliminated the added redundancy of IP and also provided for privacy and authentication, as well as greatly demanded telephony features such as call transfer and call forwarding. RTP has an

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11 3

Often a company s change in net working capital, either positive or negative, is approximately proportional to its change in revenue. Some firms, like Intel whose incremental working capital averaged 14.8 percent of revenue, have a very large amount of cash tied up in working capital. Other firms, such as some electric utilities that have an easy-pay plan in which customers deposit monies in the summer based upon a level monthly-pay plan for their peak electricity use in the winter, have a cash inflow due to a surplus of working capital.

added advantage: When errors result in packet loss, RTP does not request resends of those packets, thus providing for real-time processing of application-related content. No delays result from errors. Phase three added the ability to transmit real-time fax after establishing a voice connection, and phase four, released in May 1999, added call connection over UDP, which significantly reduced call setup time; inter-zone communications; call hold, park, and pickup; and call and message waiting features. This last phase bridged the considerable gap between IP voice and IP telephony. Several Internet telephony interoperability concerns are addressed by H.323. These include gateway-to-gateway interoperability, which ensures that telephony can be accomplished between different vendors gateways; gatekeeper-to-gatekeeper interoperability, which does the same thing for different vendors gatekeeper devices; and finally, gateway-to-gatekeeper interoperability, which completes the interoperability picture.

Session Initialization Protocol (SIP)

V3 24

While H.323 has its share of supporters, it is slowly being edged out of the limelight by the IETF s Session Initialization Protocol (SIP). SIP supporters claim that H.323 is far too complex and rigid to serve as a standard for basic telephony setup requirements, arguing that SIP, which is architecturally simpler and imminently extensible, is a better choice. In reality H.323 is an umbrella standard that includes (among others) H.225 for call handling, H.245 for call control, G.711 and G.721 for CODEC definitions, and T.120 for data conferencing. Originally created as a technique for transporting multimedia traffic over a local area network, gatekeeper functions have been added that allow LAN traffic and LAN capacity to be monitored so that calls are established only if adequate capacity is available on the network. Later, the Gatekeeper Routed Model was added, which allowed the gatekeeper to play an active role in the actual call setup process. This meant that H.323 had migrated from being purely a peer-to-peer protocol to having a more traditional, hierarchical design. The greatest advantage that H.323 offers is maturity. It has been available for some time now, and while robust and full-featured, was not originally designed to serve as a peer-to-peer protocol. Its maturity, therefore, is not enough to carry it. It currently lacks a network-to-network