terms with suppliers e.g.

get longer credit or an increased credit limit, you

festively create freed finance to help fund future sales.

A perusal of operational cycle reveals that the cash invested in operations are
recycled back in to cash. However it takes time to reconvert the cash. Cash flows
in cycle into around and out of a business it the business`s lifeblood and every
manager`s primary task to help keep it following and to use the cash flow to
generate profits. The shorter the period of operating cycle. The larger will be
the turnover of the funds invested in various purposes.

• The diagram below illustrates the working capital cycle for a manufacturing
firm
hjhhfhjnk,m