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I have read that when business cash flow forecast is in deficit so it should sell its short term investment to make less deficit.
That is why I am asking that short term investment includes inventories too? Or it only means bonds, shares, CDs and marketable securities.
And, inventories are giving kind of feeling of investment. Like we buy inventory so our money is not earned until we sell it. As it is current asset so it makes it short term investment-esque.No. They will not sell inventories simply to reduce a deficit – they will be selling their inventories anyway because that is what trade is 🙂
I am not sure why you are asking this because it is not relevant for Paper MA.
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