frequently responsible for payable and receivable; operations is in charge of inventory; and

finance handles cash management. Marketing also plays a key role because sales forecasts

are a key determinant of working capital needs” (Jordan,2001,p.477). Working capital

basically deals with a firm’s short-term assets and liabilities. “It refers to the amount of

capital which is readily available to an organization. That is, working capital is the

difference between resources in cash or readily convertible into cash (current assets) and

organizational commitments for which cash will soon be required (current liabilities)”

(Treasury, 2002). If a company operates with more working capital than necessary, there

are problems within operations. The objective is to maintain a balance within the entities of

working capital management. The overstatement of working capital could be used for

investment purposes instead of accumulating in bank deposits. The balancing of working

capital management occurs with the understanding of float management, inventory

Float is basically the difference in a comp

another company’s raw materials. For example, a pipe company’s raw materials would

is used because the demand for some inventory types are dependent on the other inventor

will occur when image exchange and check truncation begin in the next few years. That

price-sensitive environment that requires detailed information and environment that requires

into decision (Jordan, 2001, p.496). In relation to manufacturing, inventory is broken down

followed by finished goods, which would depend on the nature of the product.

float. If a payment comes from a company stationed in North Carolina, the receiving

collection float. The net effect, that is, the sum of the total collection and disbursement

Some topics in this essay:
, North Carolina, cash management, inventory management, raw materials, jordan 2001, capital management, disbursement float, book balance, collection float, available balance, balancing capital, balancing capital management, management inventory management, manufacturing inventory broken, relation manufacturing inventory, available balance represents,