Question: Can you help discuss what considerations are needed for developing a working capital policy for a company that has low cash, or insufficient cash on hand during low weeks and is at risk of defaulting?
- Discuss what a working capital policy is and what should be done with accounts receivable
- Discuss how it will reduce future difficulties for working capital management
- Evaluate the risk associated with the recommendation
- Discuss contingencies for the recommendation
- Discuss performance measures that are used to evaluate your recommendation
- Create an implementation plan for recommendation