Contemporary Financial Management, Loose-leaf Version
Contemporary Financial Management, Loose-leaf Version
14th Edition
ISBN: 9781337090636
Author: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
Publisher: South-Western College Pub
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Chapter 16, Problem 1QTD
Summary Introduction

To discuss: The reason why a company requires to make working capital investments.

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The necessity for working capital occurs since the usual operating cycle of the company needs that expenses for raw materials, labour, etc. be made preceding to receiving of the funds from the vending of the output.  Funds might be capitalised during the operating cycle in the numerous short-period assets that make up working capital specifically, cash, accounts receivable and inventories.

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Working capital explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=XvHAlui-Bno;License: Standard Youtube License