Description
a) Inventory Management Systems;
b) Aging Schedules and Bad Debt;
c) The Cost of Foregoing Discounts on Payables; and
d) Working Capital Management Ratios Across Industries.
In a 3 to 5-page paper explain why day-to-day cash flow management has important implications for both the short-term AND long-term financial requirements of a company.
Explanation & Answer
Attached.
Running head: CASH FLOW MANAGEMENT
Cash flow management
Name
Institutional Affiliation
Date
1
CASH FLOW MANAGEMENT
2
The implications of cash flow management are significant to a company’s
financial requirements, be they long term or short term. Cash flow management can be
described as the procedure of tracking the total amount of cash received less the
expenses incurred in cash. Net cash flow is very vital for any business as it shows the
financial status of that business. Many businesses around the world become
unsuccessful because of substandard management of cash flow, businesses that spend
more than what they earn are said to have a cash flow problem (Kroes & Manikas,
2014).
The management of cash flow is a vital issue when it comes to small businesses
because it enables them to avoid extended cash shortages which are brought by the
gap between the cash in and cash outs. It will not be possible to pay bills where there is
a problem in cash flow for long periods. Where such a business is not keen on the
management of its cash flows, this can have a great implication on the business (Kroes
& Manikas, 2014).
The b...