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Unformatted text preview: lines WHY THIS CHAPTER MATTERS TO YO U
Accounting: In order to record and report the firm’s transactions, you need to understand the cash conversion cycle and
the management of inventory, accounts receivable, and
receipts and disbursements of cash.
Information systems: You need to understand the cash conversion cycle, inventory, accounts receivable, and receipts and disbursements of cash in order to design financial information systems that enhance effective short-term financial management.
Management: You need to understand management of working capital and current assets so that you can decide whether 596 to finance the firm’s funds requirements aggressively or
Marketing: You need to understand credit selection and
monitoring because sales will be affected by the availability of
credit to purchasers; sales will also be affected by inventory
Operations: You need to understand the cash conversion cycle
because you will be responsible for reducing the cycle through
the efficient management of inventory levels and costs. MEDTRONIC
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