Define each of the following terms:

Key terms

a. Working capital; net working capital; net operating working capital; working capital policy

b. Cash conversion cycle model; inventory conversion period; receivables collection period

c. Payables deferral period; cash conversion cycle

d. Relaxed current asset investment policy; restricted current asset investment policy; moderate current asset investment policy

e. Transactions balance; compensating balance; precautionary balance; speculative balance

f. Cash budget; target cash balance g. Trade discounts h. Marketable securities i. Account receivable; days sales outstanding j. Aging schedule k. Credit policy; credit period; credit standards; collection policy; cash discounts AppendixLO1