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Daily Working Capital Activities

Write a 350 word paper in which you explain the concept of working capital management in day-to-day operations and the role of financial managers in ensuring an optimal working capital policy.

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I included a basic outline in the attached document so you can concentrate on whichever topic your professor emphasizes.

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Explain the concept of working capital management in
day-to-day operations and the role of financial managers
in ensuring an optimal working capital policy.

Working capital already contains the concept of the "day to day." It is the act of financial management that has capital on hand, often liquid, that is used for basic expenses. These are normally short to very short term issues that require assets on hand. Mathematically, this is expressed as a ratio that is expressed as assets to liabilities. While this seems simple, the basic concept in studying the health of the firm, before anything else, is to see what is on hand to deal with basic operational transactions such as shipping, CODs, ...

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The following posting discusses the daily working capital activities.

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