Working capital

Question

"Working Capital Management" Please respond to the following:

Examine the key reasons why a business may not want to hold too much or too little working capital. Provide examples that illustrate the consequences of either situation.

From the scenario, analyze TFC's cash budget to determine key methods in which the budget may be optimized (e.g., by renegotiating terms and conditions on some of its payables, etc.).

If you believe that there is room for improvement, recommend key strategies for TFC to use in order to optimize its cash budget. If you do not believe that this is the case, provide a rationale for your response.

 

Answer 1

Few questions are describing to "Working Capital Management" Please responds to the subsequent: Observe the key causes why a business might not want to hold too much or too little working capital. Provide instances that illustrate the effects of either situation. From the scenario, examine TFC's cash budget to find out key methods in that the budget might be optimized (for instance, via renegotiating terms and conditions on several of its payables, and so on.). If you believe that there is room for development, recommend key strategies for TFC to employ in order to optimize its cash budget. If you don’t believe that this is the case, give a rationale for your response.