BUS 320 Lecture Notes - Lecture 6: Radio-Frequency Identification, Mcgraw-Hill Education, Cash Flow

• School: NCSU
• Department: Business Management
• Course: BUS 320
• Professor: Bartley R Danielsen

Document Summary

The financing and management of the current assets of a firm. Crucial to achieving long-term objectives of the firm. Effective current assets management requires matching of the forecasted sales and production schedules. Differences in actual sales and forecasted sales can result in: Reduction in inventory, affecting receivables and cash flow. Current assets fluctuate in the short run, depending on: Level of production versus the level of sales. When production is higher than sales the inventory rises. When sales are higher than production, inventory declines and receivables increase. Use of manpower and equipment efficiently to lower cost. Match sales and production as closely as possible in the short run. Allows current assets to increase or decrease with the level of sales. Eliminates the large seasonal bulges or sharp reductions in current assets. Has significant share of sales and earnings in the third and fourth quarters. Quarterly sales and earnings per share for mcgraw hill. Due to seasonal nature of textbook publishing.