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Write an essay about the concept, importance, components, and management of working capital.

The term net working capital is associated with short-term financial decision making. Therefore short-term financial management is often called working capital management. The types of questions usually fall under the general heading of short-term finance are:
1. What is a reasonable level of cash to keep on hand (in bank) to pay bills?
2. How much the firm should borrow in the short term?
3. How much credit should be extended to customers?

Write an essay about the concept, importance, components, and management of working capital. Your essay should cover: Current assets and current liabilities, emphasizing:
a. Cash and liquidity management.
b. Credit (A/R and A/P) and inventory management.

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