Working Capital
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Using a company with which you are familiar, briefly describe in general terms how management teams might manage working capital by focusing operational efforts on a current asset or current liability. What results can be achieved?
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6 paragraph discussion of working capital.
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Since working capital is defined as the difference between current assets and current liabilities, when management teams focus efforts on increasing current assets or reducing current liabilities, working capital will increase. Naturally, the converse is also true, although generally not desirable. The goal of working capital management should be to ensure that the organization can continue operations and can satisfy both short term debt and upcoming operational expenses (current liabilities). These activities can involve managing inventories, accounts receivable and payable, and cash. (http://www.studyfinance.com/lessons/workcap/index.mv)
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