By the end of this chapter, you should be able to:
• Describe the risk/return tradeoff in managing current assets and liabilities.
• Explain the role of cash management in a business.
• List the four basic motives for holding cash.
• Identify three cash collection techniques.
• Analyze three cash disbursement techniques.
• List the key issues for a financial analyst when evaluating credit and collection policies.
• Discuss the role of inventory management in working capital assets management.
Getting Ahead of the Question
“As I was reviewing last month’s report for my division, I ...