Week 2&3 Discussion 1 & 2

Week 2 - Discussion Forum 1

Required Resources

Text

Block, S. B., Hirt, G. A., & Danielsen, B. R. (2019).  Foundations of financial management (17th ed.). Retrieved from https://www.vitalsource.com

· Chapter 6: Working Capital and the Financing Decision

· Chapter 7: Current Asset Management

· Chapter 8: Sources of Short-Term Financing

 

Recommended Resources

Articles

Aiken, N. (2018, July 16). Leveraging sales. Retrieved from https://www.globalcapital.com/

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article provides information about utilizing short-term assets to create liquidity. The article also details how accounts receivable can be financed by a bank to create quick cash for the company. This article may assist you in your Working Capital Management Case Study discussion forum and Week 2 Connect Homework Problems assignment this week.

Brooke, Z. (2017, April/May). Is your working capital working for or against you? Marketing News, 51(4), 12–13. Retrieved from https://www.ama.org/marketing-news-home/https://www.ama.org/

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article provides a study on how managing working capital has propelled companies’ success. The author articulates the overall imperative to properly manage working capital. This article may assist you in your Working Capital Management Case Study discussion forum and Week 2 Connect Homework Problems assignment this week.

Doeringer, C. (2015). Ten questions to ask before making a seasonal loan. The RMA Journal, 97(9), 62–66. Retrieved from https://www.rmahq.org/thermajournal/

· The full-text version of this article is available through the ProQuest Central database in the Ashford University Library. This article discusses sources of short-term financing, particularly as tied to seasonal risks. This article expands on Chapter 8 from the course textbook and may assist you in your Week 2 Connect Homework Problems assignment this week.

Dzinkowski, R. (2018, September). Working capital: Suppliers can wait: The cash conversion cycle shortened in 2017, largely because many companies paid suppliers as slowly as possible. CFO, 34(4), 20–24. Retrieved from https://www.cfo.com/cfo-magazine/

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article discusses working capital and focuses on the importance of cash conversion to best manage working capital. Managing cash coming in DSO (days sales outstanding) and cash going out DPO (days payable outstanding) is key to overall successful cash management and boosting working capital efficiency. This article may assist you in your Working Capital Management Case Study discussion forum and Week 2 Connect Homework Problems assignment this week.

Fenyves, V., Tarnóczi, T., & Vörö, P. (2014). Financial indicators in managerial decision-making (Links to an external site.). Annals of the University of Oradea: Economic Science, 23(1), 893–904. Retrieved from http://anale.steconomiceuoradea.ro/volume/2014/n1/098.pdf

· This article discusses working capital management and explains how to analyze current assets accounts. The article ties working capital management to short-term financing, thereby tying together Chapters 6, 7, and 8 of the course textbook. This article may assist you with your Working Capital Management Case Study discussion forum and Week 2 Connect Homework Problems assignment this week. Accessibility Statement does not exist. Privacy Policy does not exist.

McCann, D. (2014, September). At Kimberly-Clark, finance pumps up cash flow: A constant focus on cost savings and working capital pays off for the consumer goods company, says CFO Mark Buthman. CFO, 30(7), 18–20. Retrieved from https://www.cfo.com/cfo-magazine/

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article provides a real-life example of a company using their working capital efficiently. Kimberly-Clark corporation’s CEO discusses the importance of managing working capital and the current asset line items in the question, “How have you been able to improve your working capital performance so substantially?” This article may assist you with your Working Capital Management Case Study discussion forum and Week 2 Connect Homework Problems assignment this week.

McCrea, B. (2016, March/April). Creative supplier financing 101. Supply Chain Management Review, 20(2), S58–S60. Retrieved from https://www.scmr.com/

· The full-text version of this article is available through the ProQuest Central database in the Ashford University Library. This article contains practical and current information on the challenges of cash management. It presents information from a recent workshop called “Cash Flow for the Business: Understanding Payment Terms for the Good, the Bad and the Ugly.” This article may assist you in your Working Capital Management Case Study discussion forum and Week 2 Connect Homework Problems assignment this week.

Multimedia

Investor Trading Academy. (2016, February 7).  What is working capital? (Links to an external site.) [Video file]. Retrieved from https://youtu.be/aAOWhMAi8Yk

· This video defines the terms used in working capital management and provides visuals aids. This video may assist you in your Working Capital Management Case Study discussion forum and Week 2 Connect Homework Problems assignment this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Leong, C.-O. [Chee-Onn Leong]. (2017, September 20).  Short term financial management (Links to an external site.) [Video file]. Retrieved from https://youtu.be/5xa1ZtXaHb4

· This video describes in detail working capital and suggests ways companies can more efficiently handle their current assets and liabilities. This video may assist you in your Working Capital Management Case Study discussion forum and Week 2 Connect Homework Problems assignment this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

PwC. (2018, November 5).  Navigating uncertainty: PwC working capital study 2018/19 (Links to an external site.) [Video file]. Retrieved from https://youtu.be/BxgDNQ_oO4k

· This video provides facts and statistics on how real-life companies manage working capital. This video may assist you with your Working Capital Management Case Study discussion forum and Week 2 Connect Homework Problems assignment this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Supplemental Materials

PricewaterhouseCoopers. (2018/19).  Navigating uncertainty: PwC’s annual global working capital study: Unlocking cashe to shore up your business (Links to an external site.) [Annual Study]. Retrieved from https://www.pwc.com/gx/en/working-capital-management-services/assets/pwc-working-capital-survey-2018-2019.pdf

· This published study on working capital discusses trends and opportunities. This study also provides facts and statistics about real-life companies managing working capital. This study may assist you with your Working Capital Management Case Study discussion forum and Week 2 Connect Homework Problems assignment this week. Accessibility Statement does not exist. Privacy Policy (Links to an external site.)

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Instructions

Prior to beginning work on this discussion forum, read Chapters 6, 7, and 8 in the textbook.

For this discussion forum,

· Select a company, review the latest financial statements, and calculate the working capital. If possible, try to select a company that a fellow classmate has not already selected.

· Examine the company’s cash, marketable securities, accounts receivables, and inventory.

· Discuss any issues as well as positives with the company’s working capital and current asset management.

· Assess the company’s short-term financing needs and potential sources of funds.

· Be sure to think strategically and apply the concepts from the course textbook.

Your initial response should be a minimum of 200 words. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least one scholarly and/or credible resource in addition to the text.