CHAPTER 15 Managing Current Assets Alternative working capital policies Cash management Inventory management Accounts receivable management Working capital terminology Gross working capital – total current assets. Net working capital – current assets minus non-interest bearing current liabilities. | CHAPTER 15 Managing Current Assets Alternative working capital policies Cash management Inventory management Accounts receivable management 15-1 Working capital terminology Gross working capital - total current assets. Net working capital - current assets minus non-interest bearing current liabilities. Working capital policy - deciding the level of each type of current asset to hold and how to finance current assets. Working capital management - controlling cash inventories and A R plus short-term liability management. 15-2 Selected ratios for SKI Inc. SKI Ind. Avg. Current Debt Assets Turnover of cash securities DSO days Inv. turnover F. A. turnover T. A. turnover Profit margin ROE .
