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"Short-term, or current, assets and liabilities are collectively known as working capital" (Brealey et al, 2005).
Cash Flow
Cash flow is the total from cash receipts minus payments over a period of time. A company's cash flow important as it helps a company makes decisions related to short-term investments...
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If, a company has insufficient cash flow the result may be a company failure, even is sales are increasing and the company is making a profit. A company uses cash to pay their bills, not profit. If, there is not enough cash the company could fail. LA need to consider cash pays bills not profit in order to continue to operate...
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ANALYSIS ON CAPITAL STRUCTURE, DIVIDEND POLICY & WORKING CAPITAL REQUIREMENTS OF
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