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|liabilities are collectively known as|
| | |working capital" (Brealey, Myers, & |
| | |Allen, 2005) |
| | | |
| | | |
| | | |
|Cash Inflows and Cash |In the working capital management simulation, some of the cash inflows |Cash inflows come from collections on|
|Outflows |included collecting outstanding receivables from the business partners. Some |accounts receivables. Cash outflows |
| |of the outflows included operating expenses and accounts payable. |are condensed into four categories: |
| | |payments on accounts payable, |
| | |operating expenses, capital |
| | |expenditures, taxes, interest, and |
| | |dividend payments (Brealey, Myers, & |
| | |Allen, 2005) |
|Terms of Sale |In the working capital management simulation, Lawrence has terms of sale set |Terms of sale are the individual |
| |up with its business partners to pay a certain percentage at the time of the |practices that a firm has for |
| |sale and pay the rest the following week...
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