HSM340-WK6-Assignment-2015

Apr 28th, 2015
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DeVry University
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In the world of give and take there are areas in which people have to be mindful about how to obtain a free dollar when available and how to invest their cash and working capital. The traditional way to go about obtaining that dollar is through investments, using these three primary methods of short-term funding,(3 primary sources), and understanding how these areas can affect the outcome of the investments, by understanding the phases in which the working capital takes.

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HSM340 Cash and Working CapitalWeek 6 AssignmentDeVry UniversityProfessor Dr. Craig NathansonHSM 340Kerri SandersIn the world of give and take there are areas in which people have to be mindful about how to obtain a free dollar when available and how to invest their cash and working capital. The traditional way to go about obtaining that dollar is through investments, using these three primary methods of short-term funding,(3 primary sources), and understanding how these areas can affect the outcome of the investments, by understanding the phases in which the working capital takes. The cycle in which working capital is ran can be understood by knowing the difference between current assets, (cash and investments, accounts receivable, inventories and other current assets) and current liabilities, (accounts payable, accrued salaries and wages, accrued expenses, notes payable and current standing on long-term debts) . There are certain cycles in which working capital runs, that is by Cash (funds available), Creditors (accounts payable), Inventory, and Debtors. Knowing where the money is going or coming in from will better help understand the complete cycle in which there are four major activities that take effect in the overall planning of working capital investing, purchasing of resources, production/sale of service, billing and collection. Purchasing of resources, relates to the acquisition of supplies and labor, production in sale, in regards to the healthcare

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