应收账款的风险及其防范 外文原文.docVIP

SIMULTANEOUS DETERMINATION OF INVENTORIES AND ACCOUNTS RECEIVABLE BY DR. AYUB MEHAR ABSTRACT：The study presents a model based on 3,375 observations from industrial firms in Pakistan, and the Three-Stage Least Square (3SLS) technique has been applied for the estimation. The results indicate that the Economic Order Quantity (EOQ) of inventories is not a constant magnitude; it is a variable closely associated with time trend. While the ‘buffer stock’ element can be estimated through the constant term of an equation. Receivables from customers show a negative correlation with liquid assets and the cost of production. Receivables are also shown to act as substitute for closing inventories. Key Words: 3SLS, Inventory Control, Economic Order Quantity, Buffer Stock I. INTRODUCTION Working capital management is one of the important areas of financial planning and control. This broad area covers the management and control of Cash and Banking Transactions, Short-term Investments, Receivables from Debtors, Credit Analysis, Inventories and Current Liabilities. Inventories and Accounts Receivables are the two important components of Current Assets. In their work on cost accounting Mats, Curry, Frank and Khan (1982) estimated that inventories, on average, cover one third of the value of total assets in a balance sheet. Similarly, ‘Receivables from Customers’ are another important element of the Current Assets. Inventories and receivables are illiquid assets and are important for the following reasons: (1) They appear in the balance sheet at their historical value, but their realization depends on the present and future business environment and economic conditions. (2) They represent a significant share in total assets. Consequently, any change in the magnitude of these assets can affect the profitability and financial viability of a business. (3) The volume of sales revenue and profitability are directly correlated with the inventory-level and credit policies of a firm A soft cre