Question
1.Based upon the learning activities in Topic 1, you should now understand that positive working capital is normally a good thing in managing liquidity and
1.Based upon the learning activities in Topic 1, you should now understand that positive working capital is normally a good thing in managing liquidity and profitability. Explain how Wal-Mart manages its working capital efficiently.
2.In addition, compare and contrast the working capital management strategy used by Wal-Mart with the working capital management strategy used by another big retailer such as Home Depot, Costco, Amazon, or Kroger.
3.So, how does Wal-Mart manage its cash, accounts receivables, inventory and accounts payable in a way that allows them to be more profitable than Costco? Hint: Calculate the cash conversion cycle for both Wal-Mart and Costco and then compare the components.
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