Using your knowledge of working capital management, what recommendations would you suggest to Owen and Tessa in order to improve the firm ? (Use the various issues under case study sections Financial Concerns, Borrowing Issues and Working Capital to answer the question)

Working Capital Management is a great skill CFOs need and must utilize to accurately assess the long-term financial health of the company. It helps to ensure that companies always maintain adequate cash flow to meet its short-term commitments.

It is used to assess the financial performance of a company.

In order to improve the firm, I will make the following recommendations to Owen and Tessa:

1. Ensure that adequate cash levels are available for any potential upcoming opportunities or unanticipated scenarios.

2. Ensure optimum use of working capital management. It helps to evade any future hindrances in business operations.

3. Ensure Accounts Payable and Receivable are operating efficiently. All payments must be made on the agreed terms ensure the capturing of early payment discounts and increase the income of cash.

4. Endeavour to consistently maintain positive working capital; that should be the key goal. Also, avoid reaching too high a level that may lead to wastage and inefficiency.

5. Ensure to take observe some current working capital trends in order to see where mistakes and gains have already been made.

Mistakes related to borrowing, debt repayments, interest rates, etc. should be considered very carefully and avoided.

answer; by looking at total product,marginal product,and changes in both after changes in inputs