For many businesses the investment in inventories, measured in absolute amounts or as a percentage of assets, turns out to be quite significant. According to recent statistics, the average nonfinancial US corporation has a larger percentage of its funds invested in inventory than in any other...

One of the major concerns of small businesses today is adequate cash flow. Sometimes firms suffer from a negative cash flow, especially in the early years of their operation and during prolonged periods of cyclical downturns in the economy, as was the case recently. The problem is compounded...