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Financial Policy & Strategy: Working Capital Management Strategy

What is a good working capital-management strategy that would free up enough money to keep a business stable and on their feet if they were having a hard time getting the cash to pay bills for the business. Accounts receivable, inventory, accounts payable are the three accounts, and what strategy would work? What is a pro and a con of using a strategy for each of these accounts?

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What is a good working capital-management strategy that would free up enough money to keep a business stable and on their feet if they were having a hard time getting the cash to pay bills for the business? Accounts receivable, inventory, accounts payable are the three accounts, and what strategy would work? What are a pro and a con of using a strategy for each of these accounts?

For the above situation, a very active capital management strategy is best to free up needed money that will create business stability. Managing working capital first requires working with what exists and what is generated within current payables, receivables, and inventory.

Timely flow of cash creates profits. In ...

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The solution discusses working capital management strategy.

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