The management of working capital items is related to short term financing and i
ID: 2423053 • Letter: T
Question
The management of working capital items is related to short term financing and investment of cash surpluses. The components of working capital (current assets and current liabilities) need to be managed well to assure a positive working capital. Describe some of the tools that an organization manager can use to manage (receivables,accounts payable and accrued salaries and wages). The management of working capital items is related to short term financing and investment of cash surpluses. The components of working capital (current assets and current liabilities) need to be managed well to assure a positive working capital. Describe some of the tools that an organization manager can use to manage (receivables,accounts payable and accrued salaries and wages).Explanation / Answer
Working capital management is required to ensure that company has sufficient funds the different obligations of the Organisation. these obligations are the short term debt obligations and Operating expenses. Implementing the effective working capital management is very helpful to improve the earnings of organisation. its helps to improve the Cash conversion cycle of the company. Paying supplies on time is necassary for better working capial management. its also important to negotiate the discounts with suppliers.and need to have control on stock levels after evaluating the sales of each products and decide wither to made to stock or made to order. etc.
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