FIN 4260 Chapter 4_SLIDES

FIN 4260 Chapter 4_SLIDES - Part II Mgmt of Working Capital...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Part II – Mgmt of Working Capital Chapter 4 Inventory Management Chapter 5 Accounts Receivable Management Chapter 6 Chapter 7 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Cash Flow Timeline 2 The cash conve rsion perio d is the time betwe The firm is a system of cash flows. These cash flows are unsynchronized and uncertain.
Background image of page 2
Inventory Management 3 Financial Managers consider inventory an idle corporate resource. They attempt to strike a balance between holding too much inventory and not enough to earn an appropriate rate of return . Too much results in a burden on the cash resources of a firm and has higher carrying costs .
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 However, Financial Managers are not the only interested party. Sales are somewhat uncertain; so, too, is the appropriate level of inventory. Purchasing wants to keep raw materials on hand. Production
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/19/2012 for the course FIN 4260 taught by Professor Victorwakeling during the Spring '12 term at Kennesaw.

Page1 / 11

FIN 4260 Chapter 4_SLIDES - Part II Mgmt of Working Capital...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online