Discuss the pros and cons of holding high levels of assets

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Assignment - Working Capital Management

1. Discuss the pros and cons of holding high levels of current assets in relation to sales?

2. How would a more aggressive or a more conservative approach differ from the maturity matching approach, and how would each affect expected profits and risk? In general, is one approach better than the others?

3. What is the projected working capital of XYZ Company for 2023 using the percent of sales method when its 2021 sales was P2,800,000 and 2021 working capital was P900,000 while the project sales for 2023 is P4,500,000? Analyze the result.

Reference no: EM133171016

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