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Financing Current Operations and the Cash Budget

  • John B. GuerardJr.
  • Anureet Saxena
  • Mustafa Gultekin
Chapter
  • 3 Downloads

Abstract

A firm with increasing sales volume needs increased current assets to service the new level of activity. Given normal inventory turnover, higher sales necessitate a higher level of stocks. Similarly, greater sales levels enlarge the average amount of receivables the firm carries since additions to the accounts come in faster than old accounts are collected. The corporation officers responsible for working capital management must decide how to finance the required increase in current assets.

Copyright information

© Springer Nature Switzerland AG 2021

Authors and Affiliations

  • John B. GuerardJr.
    • 1
  • Anureet Saxena
    • 2
  • Mustafa Gultekin
    • 3
  1. 1.McKinley Capital Management, LLCAnchorageUSA
  2. 2.McKinley Capital Management, LLCStamfordUSA
  3. 3.Kenan-Flagler Business SchoolUniversity of North Carolina Chapel HillChapel HillUSA

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