This file of FIN 324 Week 4 Discussion Questions shows the solutions to the following points:

Define the purpose of working capital. What costs are associated with inventory? Define the purpose of working capital. Why is controlling turnover in the inventory important? How can improvements in inventory management affect profitability?Define the purpose of working capital. How does extending credit affect working capital requirements and the cash conversion period? Why is controlling turnover in the inventory important? How can improvements in inventory management affect profitability?What are ramifications if an organization has too much cash on hand? How have recent zero money down and zero money interest for 12 months offers affected potential cash buyers?What are ramifications if an organization has too much cash on hand?