Description
For this assignment, you will analyze the working capital cycle, and then create a plan to manage cash flow for a business. Be sure to list the events in the working capital cycle that directly affect cash and those that do not. Your essay will be a minimum of 500 words. Follow the steps below to complete this assignment:
- Present your cash flow plan in an essay format following APA guidelines.
- See rubric associated with this assignment for grading criteria.
Explanation & Answer
Attached.
Running Head: WORKING CAPITAL CYCLE MANAGEMENT
Working Capital Cycle Management
Name
Instructor
Institutional Affiliation
Date
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WORKING CAPITAL CYCLE MANAGEMENT
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Working Capital cycle
The working capital cycle is the time taken by a company to convert its net working
capital that is current assets less current liabilities into cash. In most cases, business tries to
manage their working capital cycle through selling their inventory faster, having a quicker
revenue collection strategy and delaying the payment of bills to ensure optimization of their cash
flow. Efficient working capital cycle indicates the ability of the company to manage its short
term liquidity (Gill, Biger & Mathur, 2010). The shorter the working capital cyc...