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Cf Working Capital 9
1.
2.
3. Carrying Costs and Shortage Costs $ Investment in Current Assets ($) Carrying costs Total costs of holding current assets. Shortage costs CA * Minimum point
4.
5. The Operating Cycle and the Cash Cycle Time Accounts payable period Operating cycle Cash received Finished goods sold Firm receives invoice Cash paid for materials Cash cycle Accounts receivable period Inventory period Order Placed Stock Arrives Raw material purchased
![Working Capital ,[object Object],[object Object]](https://image.slidesharecdn.com/cf-working-capital-9-1207897747175376-9/85/Cf-Working-Capital-9-1-320.jpg)
![Concept of Working Capital Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)