Page 183 - Microsoft Word - 00 ACCA F9 IWB prelims 2017.docx

Working capital management – Cash and funding strategies

Overview

Profitability Reasons to
vs liquidity Objectives hold cash

Cash Short term
budgets investment
CASH AND FUNDING
vs cash STRATEGIES and
forecasts borrowing

Cash Working
management capital
models funding

strategies

Baumol

Aggressive

Miller-Orr

Conservative

Matching

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