SEU Working Capital Management Discussion

User Generated

Zq85

Economics

Saudi electronic university

Description

What factors does a financial manager need to consider when determining a suitable level of working capital for a corporation? Explain why you consider your chosen factors are important.

Why is the hedging principle important for helping firms based in KSA to manage their liquidity? How is this related to Saudi Vision 2030?

Search the SEU library or the Internet for an academic or industry-related article. Select an article that relates to these concepts and explain how it relates to doing business in Saudi Arabia.

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 use citations where appropriate). For the second step, include the reference listing with a hyperlink to the article. Do not copy the article into your post and limit your summary to two paragraphs. Let your instructor know if you have any questions and enjoy your search.

You are required to reply to at least two peer discussion question post answers to this weekly discussion question and/or your instructor’s response to your posting. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn’t fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.

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This week’s discussion question asks you to discuss the following questions:

  • What are the fundamental decisions that the financial manager should make with respect to cash, accounts receivable, and inventory management?
  • In addition, what is the principle of self-liquidating debt and how can it be used to help the firm based in KSA manage its liquidity?
  • How could this be related to Saudi Vision 2030?

You are required to reply to at least two peer discussion question posts’ answers to this weekly discussion question and/or your instructor’s response to your posting. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn’t fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required. There is also a live session this week.

Finance Principles for This Module

  • Principle 1: Cash Flow Is What Matters—We are concerned with the money in hand, not accounting profit.
  • Principle 3: Risk Requires a Reward—We don’t take additional risk unless we are compensated with additional return.

Learning Outcomes

  1. Identify the determinants of net working capital.
  2. Calculate the firm’s cash conversion cycle.
  3. Estimate the cost of short-term credit.

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Explanation & Answer

View attached explanation and answer. Let me know if you have any questions.

Running Head: WORKING CAPITAL

1

Working Capital
Name:
Institutional Affiliation:
Date:

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WORKING CAPITAL
Working Capital
Numerous studies have been provided exploring the decisions financial managers must
make concerning cash, working capital, and but not limited to inventory management. In this
context, the article by Senthilnathan (2020) explores some of the common concepts surrounding
the operations executed within the business setti...


Anonymous
Excellent! Definitely coming back for more study materials.

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