Description
***Research and use USA based business practices and references***
Close to 50% of the typical industrial and retail firm's assets are held as working capital. Many newly minted college graduates work in positions that focus on working capital management, particularly in small businesses in which most new jobs are created in today's economy.
To prepare for this Discussion: Shared Practice, select two of the following components of working capital management: the cash conversion cycle, the cash budget, inventory management, and credit policies. Think about scenarios in which your selected topics were important for informing decision making. Be sure to refer to your Learning Resources for this week, research in the Walden Library, and your professional experience on working capital concepts to help develop your scenarios.
By Day 3
Post:
- Explain how the first selected topic impacted an organizational decision.
- Explain how the second selected topic impacted an organizational decision.
Explanation & Answer
Attached.
Running head: IMPACTS OF WORKING CAPITAL
Cash Conversion Cycle, And Inventory Management
Student’s Name
Institutional Affiliation
1
IMPACTS OF WORKING CAPITAL
2
For this discussion, I have chosen to look at inventory management and cash
conversion cycle. This choice is because I have come across companies that used these
elements of the working capital to survive one of the significant crises in their operations, and
one used it to gain a competitive advantage in its operations.
The cash conversion cycle can be defined as the measure of how quickly a business
gets paid for the products it sells. Most companies find it costly to finance the "gap" between
the time they pay for their supplies an...
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