| The main objective of financial decision-making is to maximize shareholders wealth. For this it is very necessary to generate sufficient profits. The extent to which the profits can be earned will depend upon the magnitude of the sales. A successful sales programmer is necessary for earning profits by any business enterprise. However, sales do not convert into cash instantly; there is invariably a time lag between the sale of goods and the receipt of cash. There is, therefore, a need for working capital in the form of current assets to deal with the problem arising out of lack of immediate realization of cash against goods sold. Therefore, sufficient working capital is necessary, to sustain sales activity. |