Working Capital Management
Running Head: WORKING CAPITAL MANAGEMENT
Working Capital Management Concepts Worksheet
University of Phoenix
Working Capital Management Concepts Worksheet
Concept Application of Concept in the Simulation Reference to Concept in Reading
Cash conversion cycle Cash conversion is the process of managing a company's cash inflows and outflows. In the simulation, the Finance Manager was responsible for balancing sales with collections or accounts receivables (cash inflows) and purchases with payments or accounts payables (cash outflows). This delicate balance maintains the company's balance sheet keeping the cash and loans in a situation of financial stability and keeping the money from being tied up. Brealey, R., Myers, S., & Allen, F. (2005). Principles of Corporate Finance: Working Capital Management. New York: McGraw-Hill. (page 851)
Effects of credit policy on cash conversion cycle and revenue Credit policies effect cash conversion cycle by either limiting or providing......
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