QUESTION

1) The book states that current asset management is an extension of concepts discussed in the previous chapter and involves the management of cash, marketable securities, accounts receivable, and inventory. We move from financial analysis (chapter 3) to working capital management and the financing decision (chapter 6) and now to current asset management (chapter 7). What is the difference between working capital management and current asset management and where does financial analysis fit it?

2) When looking at the Time Value of Money (chapter 9), why is this important to financial managers? How are the future value and present value of money related? What are some of the key items to consider when thinking about money over multiple time periods?

Public Answer

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