How does managing the given components of working capital

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Reference no: EM131312049

Assignment

APA Style

Length: 1.5 pages

The components of a firm's working capital are cash, accounts receivable, inventory, and accounts payable. Any chief financial officer's (CFO's) objective is to ensure that current assets less current liabilities-known as net working capital-is a positive number while also not having an excess of money tied up in nonproductive activities.

Write a memo to your CFO about the following:

• How does managing the following components of working capital becomes more of a challenge when dealing internationally than domestically?

o Accounts receivable
o Inventory

• Be sure to include examples of each case.

Reference no: EM131312049

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