Effective Working Capital Management in Small and Medium Scale Enterprises (SMEs) Kehinde James Sunday Dept of Accounting and Finance‚ Lagos State University Ojo‚ Nigeria E-mail: pastorkehindebox@yahoo.com Received: November 15‚ 2010 Accepted: August 10‚ 2011 doi:10.5539/ijbm.v6n9p271 Abstract The need to main effective working capital management within Small and Medium Scale Enterprises (SMEs) remain pivotal to solvency and liquidity of SMES. Most SMES do not care about their working capital position
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WORKING CAPITAL MANAGEMENT: Investment Decisions for Current Assets Compiled by Dr D. M. L. Kasilo (MBA‚ CPA‚ PhD) 1 Working Capital: What is it? 1.1 Introduction As a matter of principal‚ any understanding of financial management theories and best practices depends much on ones understanding of the balance sheet model. Figure 1‚ is adopted to facilitate discussions on working capital management practices. Figure 1:The Balance Sheet Model? Financial
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MINIMIZING WORKING CAPITAL Working capital is the key to a successful business. It is like their blood flow and the manager’s job is to help keep it flowing. Under the Generally Accepted Accounting Principles working capital is simply the difference between a company’s Current Assets‚ which are cash‚ inventory‚ accounts receivable and prepaid items‚ and Current Liabilities‚ accounts payable and accrued expenses. Working capital is of major importance to a business because it controls the current
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INTRODUCTION 1.1 WORKING CAPITAL FINANCE Every Enterprise namely company/firm/individual requires money to meet the day to day business operations‚ for purchasing stocks and for acquiring raw materials for processing and conversion to finished good. Banks provide finance to purchase inventory directly by providing funded limits or by issuing letter of credit or Bank Guarantee. Bank also provides receivables finance to provide liquidity to the customers. 1.2 CREDIT - THE LIFELINE OF BUSINESS Of
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Running Head: WORKING CAPITAL POLICY Working Capital Policy Mariano Santana University of Phoenix Table of Contents Introduction. 3 Danaher’s Working Capital. .. .3 Cash Balance Requirements..... ...3 Credit Policy .4 Supplier Negotiation Strategy ..4 Short-term Financing Strategy .5 Metrics.. . . .5 Ethical Implications
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whether big‚ medium of small‚ needs working capital to carry on its operations and to achieve its targets. Proper management of working capital is an important role of firm’s life. Working capital is essential to maintain the smooth running of business. No business can run successfully without an adequate amount of working capital. Inadequacy of working capital may lead the firm to insolvency and excessive working capital implies idle funds‚ which earns no profits for business.
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CHAPTER - I INTRODUCTION 1.1. WORKING CAPITAL MANAGEMENT Working capital may be regarded as life blood of a business. Working capital management is a process of planning and controlling the level and mix of the current assets of the firm as well as financing these assets. A study of working capital is of major importance to internal and external analysis because of its close relationship with the day-to-day operation of a business. Even in a well-established business with a long history
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Efficient working capital management is an integral component of the overall corporate strategy to create shareholder value. Working capital is the result of the time lag between the expenditure for the purchase of raw materials and the collection for the sale of the finished product. The continuing flow of cash from suppliers to inventory to accounts receivable and back into cash is usually referred to as the cash conversion cycle. The way in which working capital is managed can have a significant
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PROJECT REPORT ON “Working Capital Management of Bisleri International Pvt Ltd” Submitted in partial fulfillment of degree of Post Graduate Diploma in Management (PGDM) Batch 2011-2013 Submitted by Arpit Maheshwari Under supervision of Prof. Abhishek Tyagi (Faculty Mentor) G.L Bajaj Institute of Management and Research Plot No- II Knowledge Park –III
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LOVELY PROFESSIONAL UNIVERSITY DEPARTMENT OF MANAGEMENT Report on Capstone Project “Relationship between determinants of working capital and profitability in Cement sector” Submitted to Lovely Professional University In partial fulfillment of the Requirements for the award of Degree of Master of Business Administration Submitted by: Mohammad Hasan‚ Nishant Kumar‚ Pawan Singh‚ Ravi Kant In the guidance of:Ms. Ruchi Kakkar Assistant Professor Lpu. DEPARTMENT OF MANAGEMENT LOVELY
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