The components of a firms working capital are cash, accounts receivable, inventory, and accounts payable. Any CFOs objective is to ensure that current assets less current liabilities known as net working capitals a positive number, while also not having an excess of money tied up in nonproductive activities.
Write a memo to your CFO about the following:
How does managing the following components of working capital becomes more of a challenge when dealing internationally than domestically?
Accounts receivable
Inventory
Include examples of each case.
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