Principles of Managerial Finance, 15th Edition

Chapter 15 Working Capital and Current Assets Management

Learning Goals

1. LG1 Understand working capital management, net working capital, and the related tradeoff between profitability and risk.

2. LG2 Describe the cash conversion cycle, its funding requirements, and the key strategies for managing it.

3. LG3 Discuss inventory management: differing views, common techniques, and international concerns.

4. LG4 Explain the credit selection process and the quantitative procedure for evaluating changes in credit standards.

5. LG5 Review the procedures for quantitatively considering early payment discount changes, other aspects of credit terms, and credit monitoring.

6. LG6 Understand the management of receipts and disbursements, including float, speeding up collections, ...