Working Capital Management Flashcards
1
Q
What is Working Capital
A
The measure of short-term liquidity
Current assets - Current liabilities
2
Q
What is the purpose of a Cash budget
A
monitor sources and uses of cash
Plan management of cash flows and related costs
3
Q
What is the minimum cash balance?
A
Optimal and lowest possible cash balance that satisfies short-term cash W/O affecting entity’s ability to make payments and without holding large balances in low- or zero-interest accounts.
