Wellson Corporation has current assets, including cash, accounts receivable, and inventory, and current liabilities, including accounts payable and short term notes payable Wellson manages its working capital by focusing on management of current assets The company has effective systems in place for...

a Working capital is the excess of total current assets over total current liabilities It represents ...

Wellson Corporation has current assets, including cash, accounts receivable, and inventory, and current liabilities, including accounts payable

Question:

Wellson has current assets, including cash, accounts receivable, and inventory, and current liabilities, including and short-term notes payable. Wellson manages its working capital by focusing on management of current assets. The company has effective systems in place for granting credit to customers, collecting overdue accounts, and managing inventory.
(a) Discuss why management of working capital is important for effective business operations.
(b) Discuss how Wellson can improve its management of working capital.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...