Working Capital Management

User Generated

FNZ66

Economics

Description

Provide some examples of working capital management and explain how they are involved with a firm’s asset-investment decisions regarding capital management. Using those examples, explain steps that management can take to manage working capital more efficiently. Why are these concepts important to business leaders in Saudi Arabia and Saudi Vision 2030?

Search the international library or the internet for an academic or industry-related article. Select an article that regarding working capital management, and how it impacts business decisions in Saudi Arabia.

Direction:

For your discussion post, your first step is to summarize the article in two paragraphs describing what you think are the most important points made by the authors (remember to cite the information, as appropriate).

For the second step, include the reference listing with a hyperlink to the article. Please note, do not copy the article into your post and limit your summary to two paragraphs.

Be sure to support your statements with logic and argument

citing all sources referenced and inside the text.

APA style

6-8 paragraphs including ( introduction - body - conclusion )

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Explanation & Answer

Hey, here is the final answer.😃

Working Capital Management

Working Capital Management

INTRODUCTION´
´Working ´capital
Working´capital´refers´to´the´circulating´capital´required´to´meet´the´day´to´day´operations´of
a´business´firm.´Working´capital´can´be´defined´as´the´excess´of´current´assets´over´current
´liabilities´and´provisions.´Calculated´as´the´current´assets´minus´the´current´liabilities.
´Working´capital´is´also´called´operating´assets´or´net´current´assets.´—Mead,´Baker´and
´Malott
WC=´CA-CL.
´
Working´capital´management
Working´capital´management´refers´to´a´company’s´managerial´accounting´strategy´designed
´to´monitor´and´utilize´the´two´components´of´working´capital,´current´assets´and´current
´liabilities,´to´ensure´the´most´financially´efficient´operation´of´the´company.
Examples´of´working´capital
Gross´Working´Capital´
-´The´total´of´all´current´assets´or´all´short-term´assets.´Current´assets´here´mean´cash,
´marketable´securities,´inventories´and´receivables.´They´are´meant´for´a´lesser´period.´They
´represent´liquid´asset.´Gross´working´capital´represents´the´liquidity´position´of´the
´organization.´That´this´much´of´the´asset´they´are´holding´for´getting´readily´available´as´the
´cash´in´the´business.

Working Capital Management

Net´Working´Capital´
Net´working´capital´means´excess´of´current´assets...


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