WEEEK 3 DISCUSSIONS - WEEK 3 DISCUSSIONS DISCUSSION 1 Read...

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WEEK 3 DISCUSSIONS DISCUSSION 1: Read the journal article, “Businesses Seeking Working Capital-Survey.” Based on the information presented in the article, discuss the following: How should a business use working capital analysis? Which is more important to the short-term lender: the stock of cash or the flow of cash? Is it possible in today's business to operate with no current liabilities? Respond to at least two of your classmates’ posts. ANSWER: Author Biery describes that working capital analysis is "used to fund day-to-day operations at companies, so in addition to receivables, it could cover expenses such as payroll and the costs of procuring, storing and managing inventory" (Biery, 2013). Working capital is the health of a business in order for that business to operate daily by looking at accounts payable, accounts receivable, and cash. Business should use working capital analysis by financing and receiving loans so their businesses can remain flourishing and unforeseen challenges or other expenses can be taken care of. In my opinion, it is important to the short term lender is the flow of cash. In the text the authors explain that
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