Unit 3: Working Capital Management
Working capital management explains how companies manage their day-to-day financial decisions. Effective management of current assets and current liabilities is crucial to make sure companies have enough cash flow to meet their regular obligations and maximize their financial return. The four main focus areas in working capital management are cash, accounts receivable, inventory, and accounts payable. Companies try to find the most effective use of assets and liabilities while balancing the trade-off between liquidity and profitability.
Completing this unit should take you approximately 6 hours.
3.1: Overview of Working Capital
3.2: Cash Management
3.3: Managing Accounts Receivable
3.4: Inventory Management
3.5: Sources of Short-Term Financing
Unit 3 Practice and Assessment