Homework
Purpose of Homework
One downfall of many small businesses is the inability to keep sufficient cash on hand and to calculate the amount of liquid cash that is necessary for day-to-day operations. This homework asks you to calculate cash conversion and to determine the funds necessary for the maintenance of business health.
Task
Write a 350 to 525 words paper in which you complete the following:
1. Explain the difference between permanent and temporary working capital, and describe what a firm could do to minimize risk.
2. Evaluate how small adjustments made to total cash conversion can have a large impact upon the financial health of a company.
3. Describe Economic Order Quantity (EOQ Using the EOQ formula and an example product for your business, determine the optimal quantity of the item to purchase that will help to minimize the annual total costs of keeping that item in inventory.
4. Describe what a Just-in-Time (JIT) inventory system is and its significance in reducing inventory costs.
5. Show all cash conversion cycle calculations in a spreadsheet, and attach it as an Appendix.
Format your homework according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.