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Increasing net operating asset turnover requires some combination of increasing sales and/or decreasing net operating assets. For the latter, many companies consider ways to reduce
Increasing net operating asset turnover requires some combination of increasing sales and/or decreasing net operating assets. For the latter, many companies consider ways to reduce their investment in working capital (current assets less current liabilities). This can be accomplished by reducing the level of accounts receivable and inventories, or by increasing the level of accounts payable.
- 1.Describethemarketingimplicationsofreducingreceivablesandinventories,andthesupplierimplicationsofdelayingpayment.
- 2. Howcanacompanyreduceworkingcapitalwithoutnegativelyimpactingitsperformance?
- Note: Do not copy and paste from previous answers. The previous answer to not address the full questions.
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