All about Working Capital Management, Cash Management, Accounts Receivable Management, and Inventory Management

1. What are the certain liquidity issues that may arise when a firm has a temporary cash flow problem?

2. The definition of the maturity-matching approach is simply stated as, "When a firm matches asset and liabilities maturities." However, why do we need to match maturities? In addition, what are some policies on maturity matching?

3. From the purchaser/payer's point of view, is it always a productive choice if we pay our creditors according to their set cash discount period? If yes, why? Otherwise, why not then?

4. The float is money in the banking system that is momentarily counted twice due to time delays in reporting a deposit or withdrawal. In a way, it is a form of discrepancy between the book balance and the bank balance. However, why is it not subject to reconciliation?

5. Aside from cash budget, what are the other techniques that a company may use in the synchronization of cash flows?

6. Discrepancies between actual cash flow and forecasted cash flow are par for the course; however, too much gap can result in the adverse impact of uncertainty in cash management noted in the presentationhence, the suggestion of mitigating its effect through improved forecasting. So, what are the possible ways to improve management's forecasting cash flow for better cash management?

7. Why is credit scoring one of the most common methods of evaluating the credit risks of an applicant or firm? Specifically, how does it work and what are its advantages?

8. How is an aging schedule important to a company? What will happen if they don't have one?

9. Decoupling serves as a buffer between product demand and product supply and is used in work-in-process inventoriesin general, it is used as a buffer against increased internal demand. With that being said, how exactly does it do that? How does it reduce delay and improve efficiency? Please cite an example.

10. What are the underlying outcomes if a company unsuccessfully minimizes the total inventory costs? What steps must they incorporate to mitigate its adverse effects?

11. Every organization has their own customer demand patterns, classifications, and other issues, how does this affect the applicability and/or effectiveness of an ABC analysis?