Sign In
Not register? Register Now!
Essay Available:
Pages:
1 page/≈275 words
Sources:
1 Source
Level:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 4.86
Topic:

The Strategies the Business Owners Used To Manage Their Working Capital (Essay Sample)

Instructions:

Watch the "Concept Review Video: Working Capital Management" video located in theWileyPLUS Assignment: Week 3 Videos Activity. Discuss strategies these business owners used to manage their working capital. Please discuss their accrued expenses managment style. The video is located at

source..
Content:

Learning Team Week 3
Name
Institution
The Strategies the Business Owners Used To Manage Their Working Capital
The business bought small 4 stores as they tried to venture into an industry with no idea about the business. Before the company started, they did proformas to understand where the opportunity lies and what kind of capital was needed to start and grow the business. In the business the use of cash-flow statement was used to manage working cash-flow. To determine cash flow, they used color screens of two colors red and black. Red means no cash flow while black means having cash flow. The cash-flow technique helped in enhancing efficiency in capital management for the firm. The Company decided to work independently as compared to going for a venture capital partner. They did not want to work for somebody else. The company was focused on going into the business alone because that was their goal. The managers’ understanding was that when they open the right stores within the right locations, the cash flow would service any debts. The company also looked at the timeframe and scheduled for repaying back of the money borrowed by developing a plan. It is important, therefore, to weigh between the difference of borrowing money versus putting one’s own money based on the long and short term benefits. According to the company, retail stores have advantage of cash flow as compared to even grocery stores where cash flow is limited because of supplies. In their retail stores, 50% of money is cash while 50% are credit. A good cash flow allows the ease of servicing a business’s financial needs.
Accrued Expenses Management Style
Some of the ways of using credit include trade credits; trade credit means one is given time to pay back, the vendor for the products. The longer the terms are, the better, because it gives one time to sell to have money to pay back. Therefore, the company has to work with flexible vendors who give them longer terms credit. In its accrued expenses management style, it had to acquire stocks from its suppliers on credit, which would l...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

Other Topics:

  • Foreign Country Investment
    Description: You are the CEO of an organization based within the United States and you are looking to make an investment into a foreign country...
    1 page/≈275 words | 2 Sources | APA | Business & Marketing | Essay |
  • General Motors Co. Pulling Out Of Facebook
    Description: General Motors Co. (GM), withdrew from Facebook advertising after identifying that the site had little impact on the consumers’ intent to purchase their vehicles....
    3 pages/≈825 words | 5 Sources | APA | Business & Marketing | Essay |
  • The Goals And Objectives Of A Firm/company In The Modern Industry
    Description: Economic theory and tools are necessary to make decisions and achieve the firms or organization’s aims or objectives more efficiently. Value or wealth maximization is a corporate objective in finance that depends on increasing the wealth of firms and shareholders....
    2 pages/≈550 words | 2 Sources | APA | Business & Marketing | Essay |
Need a Plagiarism Free Essay?
Submit your instructions!