Managerial Finance: Volume 15 Issue 6

EVALUATION OF THE EFFECTS OF HOLDING EXCESS INVENTORIES

Leo R. Cheatham

The 1980s have brought a new awareness of the negative effects of holding excessive inventories. High interest rates and the popularity of Japanese management techniques such as…

THE IMPACT OF ECONOMIC CONDITIONS ON THE SIZE OF INVENTORIES

Theodor Kohers

For many businesses the investment in inventories, measured in absolute amounts or as a percentage of assets, turns out to be quite significant. According to recent statistics…

LIQUIDITY CHARACTERISTICS OF SMALL AND LARGE MANUFACTURING FIRMS

Jimmy Moss, Bert Stine

Many studies have compared various characteristics of large and small business firms. For example, recent studies have documented the “small firm effect”. These articles have…

ECONOMIZING ON CASH INVESTMENT IN CURRENT ASSETS

Carole CPA Cheatham, Ph.D.

Once a firm has acquired the necessary buildings and fixtures to begin operations, most of its cash flows are the result of investing in and selling of current assets. The bulk of…

AN OPERATIONAL AUDIT OF WORKING CAPITAL MANAGEMENT

Dale L. CPA Flesher Ph., CMA CIA

An operational audit (or value‐for‐money audit) is an organized search for ways of improving efficiency and effectiveness. Although internal auditors have traditionally performed…

INVESTOR RESPONSE TO CHANGES IN CORPORATE LIQUIDITY

William L Huth

The liquidity component from financial analysis has been found to be an important predictor of a firm's financial well being. Altman's credit worthiness and financial viability…