Inventory Management

Paper Summary:

This paper reviews and discusses the importance of inventory management within a business. According to the paper, the management of assets can make or break a business. The paper goes on to say that financial statements do not tell analysts all they want to know. The paper includes sample financial sheets and summary.

From the Paper:

"Based on the summary of financial analyses presented above, we can say that ABC is a profitable and growing Company. Although there is a decreased of 0.17 or 4% in Current ratio, there is a positive and increase working capital of $10,000 and increase if 0.37 or 21%, in Quick Ratio. It means that on current liability of $1, the company has a current asset of $3.50 in 2006 and 3.67 in 2005 whereas $1 of current liability, it has "near cash" availability of $1.70 in 2006 and $1.33 in 2005. In both instances, this is a positive note signifying that it has the ability to pay its obligation in the near future. "

Sample of Sources Used:

• Balance Sheet - A Finance Managing Tool. Retrieved April 28, 2007 from http://trmep.tamu.edu/cg/factsheets/rm5-5.html
• Working Capital Cycle. (1996-2007). Retrieved April 24, 2007. from http://www.bized.co.uk/learn/business/accounting/busaccounts/notes/wcap-th.htm
• Managing Working Capital (2007). Retrieved April 24, 2007 from http://www.planware.org/workingcapital.htm
• Louderback, Holmen and Dominiak. (2000). Managerial Accounting. Analyzing Financial Statement (pp. 794-802; 811-814). Singapore: South Western College Publishing.
• Financial Management. (2004). Retrieved April 27, 2007. from http://www.allianceonline.org/FAQ/financial_management

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