Current asset accounts, especially cash and inventory, usually increase at a rate slightly less than the growth

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Current asset accounts, especially cash and inventory, usually increase at a rate slightly less than the growth rate in sales. Why? If true, what is the implication of this fact for the sustainable growth model?

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Introduction to Corporate Finance

ISBN: 978-0324657937

2nd edition

Authors: Scott B. Smart, William L Megginson

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Question Posted: May 13, 2015 06:05 AM

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Current asset accounts, especially cash and inventory, usually increase at a rate slightly less than the growth

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Introduction to Corporate Finance

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