Sales: Sales: Support: Support:
Academic writing services  
Custom written essay Book report Research paper Dissertation Resume and CV Editing and proofreading  
main menu
By ordering custom paper you get
  • 24/7 Support
  • Over 100 professional US Writers
  • 300 words per page
  • Flexible discount system
  • FREE revision (within 2 days)
  • Anti-Plagiarism Software Check
we accept
sample essays
Accounting Essays
Admission Essays
Analysis Essays
Art Essays
Biography Essays
Biology Essays
Book Review Essays
Business Essays
Case Studies Essays
Cause and Effect Essays
Character Analysis Essays
Communication Essays
Communication and Media Essays
Compute Technologies Essays
Consideration Essays
Controversial Essays
Description Essays
Economics Essays
Education Essays
Evaluation Essays
Explanation Essays
History Essays
Job Essays
Law Essays
Management Essays
Medicine Essays
Music Essays
Personal Essays
Personal Experience Essays
Persuasive Essays
Persuasive Speech Essays
Philosophy Essays
Political science Essays
Politics Essays
Proposal Essays
Psychology Essays
Reflective Essays
Religion Essays
Research Essays
Response Essays
School Essays
Science Essays
Sociology Essays
Technology Essays
World Literature Essays
Cash and Working Capital essay
← Planning DocumentSecret Business Information →

Cash and Working Capital. Custom Cash and Working Capital Essay Writing Service || Cash and Working Capital Essay samples, help

What are four general phases of the working capital cycle?

Working capital refers to both current assets and current liabilities of a company. The four general phases of the working capital cycle include: obtaining cash, turning cash into resources, using the resources to provide services and then billing customers for the services provided (Zelman, McCue & Glick, 2009). A working capital cycle ensures that the company’s cash inflows compensate cash outflows and at the same time enable good timing of these cash flows. Zelman, McCue & Glick (2009) indicated that “when payments come due before cash is available, a company has to obtain cash from sources other than existing revenues” (p. 188).

What are the three primary sources of short-term funds?

Many organizations find that they need to borrow funds for short periods to meet their obligations. The three primary sources of short term funds include bank loans, trade credit and commercial paper. Boone & Kurtz (2010) indicated that trade credit is extended by suppliers when a company receives goods or services, agreeing to pay for them later. Bank loans from commercial banks are used to finance accounts receivable and inventory (Boone & Kurtz, 2010). They can be secured or unsecured with accounts receivable or inventory pledged as collateral. Boone & Kurtz (2010) state that commercial paper is a short term IOU (“I owe you”) sold by a company. Commercial paper market is limited to large, financially strong companies.

An organization's short-term investment options for idle cash include what four areas?

After a company has gone through the effort to collect its cash, it wants to ensure that the money is invested properly to generate good returns. Zelman, McCue & Glick (2009) established that “short-term investment include treasury bills, certificate of deposit, commercial paper and money market mutual funds” (p. 211). According to McKinney (2004) treasury bills are initially issued in $10, 000 denominations having 91-to-182-day maturities. On the other hand certificate of deposit is issued with 9- and 12-month maturities.

Treasury bills are most liquid and default free since they are purchased at a discount and redeemed at face value. Certificates of deposit have higher risk and higher yield than treasury bills. McKinney (2004) indicated that a company can invest its short term funds in commercial paper. Commercial paper is a business promissory note specifying a future payment date. McKinney (2004) established that “commercial papers are usually sold at a discount and are supported by the general credit of the company” (p. 217). The maturity dates of commercial paper range from 30 days to 9 months. Commercial papers yield one quarter to one half greater than that of treasury bills.

A company can invest its idle funds in money market funds. These are mutual funds that invest in marketable securities. McKinney (2004) says that money market mutual funds involve pooling of cash from a number of investors to purchase different types of market securities such as treasury bills. Money market mutual funds provide yields that are much higher than those obtainable from saving banks (McKinney, 2004). Money market mutual funds provide flexibility for entering and withdrawing funds.

Discuss the term float

According to Sharan (2008), float represents the difference between the cash balance appearing in the bank records and records appearing in the company books. A float may be either negative or positive. A negative float occurs when a company receives payment, while a positive float occurs when a company makes payments. Sharan (2008) commented that “a negative float exists when a customer makes payments for goods purchased to the firm but the amount does not stand credited to the firm’s bank account” (p. 159). Float is thus the sum of the mailing, processing and clearing delays of a check or a payment made to the company account (Sharan, 2008). 

Cash and Working Capital. Custom Cash and Working Capital Essay Writing Service || Cash and Working Capital Essay samples, help

Order Now
Order nowhesitating

Related essays

  1. Secret Business Information
  2. Business Plan
  3. Planning Document
  4. Small Real Estate Business

order now

Order now
why choose us
96% of satisfied returning customers
24/7 customer support
A wide range of services
Up-to-date sources
100% privacy guaranteed
MA/PhD writers
Custom written papers only
Free plagiarism report (on demand)
Free revision (within 2 days)
Free cover and bibliography page
Direct communication with a writer
Are your writers qualified for the custom writing?
How quick can my order be accomplished?
Is it legal to buy custom essays, term papers or book reports from your company?
Are essays offered by your company truly custom-written?
Is it safe to buy from
How secure is the payment system of your company?
Can I submit custom essays or term papers done by your company as my own?
How can I contact your company if I've got problems with my ordered paper?

Finally, I've found the real custom writing service . My grades are saying "Thank you, it's been a pleasure to work with you."

Jamal, South Africa

I can't believe you finished my essay under such a short deadline! You saved me from a disaster once again. You guys deliver exactly what you promise. I'll be back. That's for sure!

William H , Kansas, US

contact us
Toll free for US & Canada only. International callers are charged for outgoing calls.

Our phone numbers: provides custom term paper writing/rewriting services inclusive of research material for assistance purposes only. The term papers should be used with proper reference and are not meant to replace actual assignments.

Get 15% off your first custom essay order

Order now

from $12.99/PAGE