Describe the significance to working capital management of

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Q1. Explain how rapidly expanding sales can drain the cash resources of a firm.

Q2. What is the significance to working capital management of matching sales and production?

Q3. A firm that uses short-term financing methods for a portion of permanent current assets is assuming more risk but expects higher returns than a firm with a normal financing plan. Explain.

Q4. Since the mid-1960s, corporate liquidity has been declining. What reasons can you give for this trend?

Reference no: EM13477615

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