Other Form of Name
Woods, C. E. (Clinton Edgar)
Document Type
Article
Publication Date
1922
Abstract
From a financial point of view, investment; its use, control and returns, are the chief objects in every manufacturing business, and all activity should be with this clearly in mind. Looked at in fact, there are just three things, primarily, that tie money up in a manufacturing business, viz: Plant Inventory Accounts Receivable. Plant investment is fixed, or permanent; Inventory and Accounts Receivable are flexible and in these two latter lies the danger to successful administration, unless it is governed by a policy that will keep them well within the confines of the capital employed or available. It is this very flexibility that piles up inventory instead of cash for dividends, and grants credits that cause borrowings to be made, often beyond the earning power of a business. Over-expansion of credits and over-borrowing being the cause of 90% of all industrial ills, the problem resolves itself into a policy that will relate capital and turn-over in such a way as to avoid this danger.
Relational Format
article
Recommended Citation
Woods, C. E., "Analytical balance sheets for industrials" (1922). Individual and Corporate Publications. 20.
https://egrove.olemiss.edu/acct_corp/20