Introduction to the city Essay Example | Topics and Well Written Essays - 750 words

Introduction to the city - Essay ExampleCash flow can be specify as the pattern of income and expenses, and its consequences for how much money is available at a given timeThe process of managing running(a) roof would involve deciding what measurement of cash, other liquid assets, accounts receivable and inventories the buckram would require to have at any given point of time. The focussing of working crown is concerned with the management of assets such as cash, marketable securities, account receivable, investor prepaid expenses and the current assets also liabilities such as accounts payables, wages payables and accruals.2 Working capital can in general be generated by receiving short term loan from a bank or by placing aside a sum from the equity. Generally working capital can not be added up while taking a long term loan from a bank.According to Keynes a firm holds working capital for three basic reasons to benefit from timely opportunities arising in the market, as a f und to deal with unforeseen crisis that require immediate action and to conduct out the regular business activities of cash inflow and outflow. The process of working capital management is relatively complex and it is meant to ensure that a firm is candid to carry out its regular activities with optimum efficiency at the same time fulfill the short term debt requirements and forthcoming operational expenditures. This process requires an analytic approach towards the spending and receiving of the funds available on hand. The analysis requires decisions to be taken for the following questions such as how should the firm manage its cash? To whom should the firm grant credit? How much inventory should the firm keep? What should be the composition of the firms current debt? 3The goal of managing working capital is to have cash inflow as early as possible and to delay the cash outflow as much as possible and at the