The components of a firm’s working capital are cash, accounts receivable, inventory, and accounts payable. Any CFO’s objective is to ensure that current assets less current liabilities—known as net working capital—is a positive number, while also not having an excess of money tied up in non-productive activities. Write a memo to your CFO about the following:
How does managing the following components of working capital becomes more of a challenge when dealing internationally than domestically?
A. Accounts receivable
Include examples of each case.
The question belongs to Finance. The question here is about the importance of working capital. A memo to the CEO of a company has been given here. The finance department discusses the importance of working capital management and its importance for the long term survival of the company.
Total Word Count 540
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