Management of Working Capital Case Study: “George’s Trains” Describe his working capital practices, including his methods of capital budgeting analysis techniques. Analyze the potential pitfalls in hi

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study portrays ********** Trains ** * business **** *** been faced **** a ****** of ********** ********** ***** ******** ********* as **** ** ***** *** ***** ********* have **** ******** ** *** success ** *** firm’s ******* ** managed to make ***** working ******* *** capital ********* ********* that ******* * ********** ******* *** *********** ********* performance ****** *** ********** ** excellent net working ******* ******** employed ** ****** ******** ************ ********** ********* Baños-Caballero ************** *** **************** ****** note **** this is ** approach that *** **** * ******* reduce *********** *** ******** keeping *** ********* ** * ********** ***** ******** George **** ** excellent *********** ** ******** ********** working capital levels ***** **** George’s ******** *** ******** ** a ***** ***** ** ******** less ******* capital *** **** ********** ******** ** keep ********* ** low ** ******** makes *********** ******* ** ******** the ****** of ****** ********* working ******* ** *********** *** inventory ** * reasonable levelWhile ********* is considered ** ** * ******** ***** ******** ** ** ***** ******* become a ********* **** ** does not **** ***************** ** al ******* essence this ******** ****** *** ** ******** as well ** streamline ********* ** * manner **** ********** ***** ***** keeping ********* trade-offs ** **** ****** **** **** ** ***** inventory ****** ***** months *** ******** ***** ********* ** **** ******* mentioning **** he *********** increased ****** *** orders *** ********* ******************* capital budgeting is a ******** **** ******** ******** ** the ********* payoffs on ********** *********** which ****** ******* ingenious ******* ** ******* new ******** ** **** as ***** ******** ******** ** * lower **** ***** ** al ***** ******* ***** ****** ******* ** ******* *** quality ** *** Classic ****** ****** ** **** ** ********* * *** ******* **** when *** ****** ***** ** ******* to ** **** *** ***** ** ** ******* ** ********* ******* trains *** race *********** ****** highlights **** ********** decisions **** ***** ********** **** current trends **** a *********** **** **** ** ***** to ********* ************** ******* ****** * ******** that ****** ****** ******* **** ** ********* ********* to ******** *** ****** ****** ****** *** ****** The *********** ******* capital ********* *** ******* budgeting ******** ********** **** ****** *** * ********** business amidst the ********** **** faced *** Analysis ** consumer ****** **** helps inform George’s ******* investment ******** ********** **** ** ******* ** *** *** ******** as well ** ********* *** new ******* *********** the ********* ******** ** *** ******* ********* ********* **** ****** ****** be ***** of * **** ********* ******* budgeting ******** ******** ** ****** ******** analyzing data ** ******* ****** in ******** behavior ******* * major ******* that ****** ****** ** aware ** ** *** fact **** ******** ********* are ********* ************* ****** impossible ** predict changes ** ******** ********** habits as accurately ** ******** ********* **** &Suarez ***** Overreliance ** **** technique might ******** *** ******* ** *** ******** ********* *** *********** ***** ** incorrect *********** ******* ******* ** * ********* **** ******** capital ********* ** that ** focusing ** accounting ******* **** **** ******** ****** ****** ***** **************** ********* **** ********** the ******** and ********* ** a *** ******* line because he’s ************ ** the **** *** ******* values ******* he ***** ** consider *** possibility of ******* ******* *** ********** ** *** **** **** he makes ******** ***** ****** ******** **** he considers both *** ***** and ******** ** a capital ********** ** *** ******** Develop * simple statement of cash ***** *** ********** ****** ***** *** *********** ******* **** the ***** **** ***** ** *********** ** *** ************** et al(2013) ****** **** * ********* ** **** *********** provides crucial information ***** * ************ cash ******** **** ******** as **** ** *** net change ** **** resulting from *** ********* investing *** ********* activities within a particular ****** Considering George’s ***** ***** there ** ** ******* ** ******** ********* ******* *** ***** ** the *********** of *** ************ ********** and ********** the following could be a ****** ********* ** **** ***** *** ********** **************** Train StoreStatement ** **** FlowsFor *** Year Ending *** ******** ***** **** operating ***************** Sales Income $76000Less **** **** for  Inventory$25000 Wages$7000 Interest$3500 Other operating ********************* ********************* **** **** operating ************************ ***** **** ********* *********************** ******************** **** ******** by ********* ************************* ***** **** financing *********************** ** ***************** cash **** ** ********* activities (5000)   Net *************** ** the above hypothetical ********* ** **** flows *** George’s ****** ***** one **** ** improvement that ***** be *********** involves ********* *** inventory ******* ** include ***** **** ***** *** so many ***** **** *** in demand ** ******** within *** ******* ****** such ** ***** trains **** *** trucks *** ** ********* ***** ******** ** *** ***************** ** ** ***** George **** ******** *** ********* ***** ****** ** ********* ** **** consumers **** ***** translate to ********* **** ******* ** *** **** of net ***** ****** ******* **** ******** ********** operating ***** by ********** ******* ******** ********** *** ******** by ********* ** anonline website **** ****** ********* ** ********* **** ** recommended by ******** et ** ************************************ S ************** * * ***** Martínez-Solano * ****** ******* capital ********** corporate performance and financial constraintsJournal ** ******** Research67(3) *********** J Hickman K ***** ********* * (2013) ********** Finance *********** ******** ********* **** ********************************** * * Kahl * * ***** ****** F * (2015) Services industry ********* and *** *********** ********** ** ******* firmsStrategic ********** ************ ************** A ****** ******* ********** ********** Time value ** ********** ******* ** ************** ***********