Soil Science and Water Management

Working capital management is the process of planning and controlling the level and mix of the current assets of the firm as well as financing these assets. Specially, Working capital management requires financial managers to decide what quantities of cash, other liquid assets, accounts receivable, and inventories the firm will hold at any point in time. tradition, financial managers must decide how there current assets are to be financed. Financing choices include the mix of current as well as Iong-term liabilities. This high degree of divisibility has two important implications for the management of working capital, first, if the management to choose, working capital can be acquired piecemeal to meet immediate needs as they arise. ln the management of working capital, the firm is faced with two key questions. First given the level of sales and the relevant cost considerations, what are the optimal amounts of cash assets, account receivable, and inventiories that a firm should choose to maintain? Second, given these optimal amounts, what is the most economical way to finance these working capital investments? This work encyclopaedic in nature, will prove a dependable reference work to both the academics and professionals alike.