The purpose of managing current assets and current liabilities is to

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The purpose of managing current assets and current liabilities is to achieve a balance between profitability and risk that contributes to the firm's value. This involves ensuring that the company has enough current assets to meet its short-term obligations, while also minimizing the costs associated with holding excess inventory or cash. Additionally, managing current liabilities involves finding ways to minimize the costs of financing, such as through negotiating favorable payment terms with suppliers or using short-term financing options with low interest rates. Ultimately, the goal is to optimize the company's use of its current assets and liabilities to maximize profitability while minimizing risk.

The Purpose of Managing Current Assets and Current Liabilities Is