Working Capital Management Strategies and Cash Flow Planning
· You are the CFO at a manufacturing company. Your company
is anticipating an impending cash crunch. What short-term working capital
strategies might you employ? Why? In what order would you implement them? Why?
· What part of working capital management does a company
have the most control over? Why? What does a company have the least control
over? Why?
· What is the most important part of cash flow planning?
Which variable must be determined accurately? Is it healthy to have a cash
balance at the end of each month? Why or why not?
· What are the main inputs needed to begin the financial
portion of a strategic plan? Who is responsible for providing those inputs? Why
are these inputs so important? How would you use these inputs to create the
plan?
