Gross Working Capital vs Net working Capital Working capital of a company is one of the most important measures in any financial statement that is also easy to calculate. It is a reflection of the current financial condition of a company that enables investors to know about the health (financial) of a company. However‚ there are two terms called gross working capital and net working capital that are also used commonly. People remain confused between these two as they cannot differentiate between
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sales for each of the six months ending 30th June‚ 20x0 Solution: Note: High demand cannot be satisfied with a just in time stock management system. Therefore‚ over calculation for expected sales will be based on medium and low demand. SALES WORKING (£) Cash Receipt February = 19000 X 0.1 = 1900 Credit sales ½ X (19900 – 1900) = ½ X 17910=8955 Credit M = 2.5% X 8955 = 2239 = 224 Discount credit receipt in March = 8955- 224= 8731 Cash receipt March = 23900 x 0.1 = 2390 Credit sales ½ x (23900-
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chp-14.qxd 10/18/05 12:48 PM Page 145 CHAPTER 14 Working Capital Management I n the chapters on ‘Planning an SSI Unit’ and ‘ Business Plan’‚ a discussion was made on the fixed capital and the working capital. Every business needs investment to procure fixed assets‚ which remain in use for a longer period. Money invested in these assets is called ‘Long term Funds’ or ‘Fixed Capital’. Business also needs funds for short-term purposes to finance current operations. Investment
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Define working capital. -Working capital cycle is a firm’s current assets. Current assets are those that the firm’s expect to convert into cash within a year. b) Explain the working capital cycle and illustrate your answer by using a diagram. -The working capital cycle is measures the time between paying for goods supplied to you and the final receipt of cash to you from their sale. It is desirable to keep the cycle as short as possible as it increases the effectiveness of working capital cycle
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Dell’s Competitive Advantage Funding 52% Growth in 1996 Funding 50% Growth in 1997 3 Conclusion 5 Exhibits Exhibit 1: Dell’s Annual Worldwide Sales Dollar Growth Versus Industry Exhibit 2: DSI Comparison of Dell‚ IBM‚ and Compaq Exhibit 3: Working Capital Financial Ratios for Dell Exhibit 4: Percent of Dell Computer Systems Sales by Microprocessor Exhibit 5: Profit & Loss Statements for Dell Computer Corporation Exhibit 6: Balance Sheets for Dell Computer Corporation Exhibit 7: Projected Balance
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³WORKING CAPITAL MANAGEMENT OF OIL AND NATURAL GAS CORPORATION (ONGC)´ PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTERS IN MANAGEMENT STUDIES MUMBAI UNIVERSITY Submitted By ANKUR JAIN (MMS- Finance) MET¶s INSTITUTE OF MANAGEMENT MET COMPLEX‚ BANDRA RECLAMATION‚ BANDRA(W) MUMBAI-400050 Page | 1 CONTENTS Student¶s declaration Acknowledgement Executive Summary Company profile Methodology used Concept of working capital Factors
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Impact of Working Capital Management in the Profitability of Hindalco Industries Limited J P Singh* and Shishir Pandey** For the successful working of any business organization‚ fixed and current assets play a vital role. Management of working capital is essential as it has a direct impact on profitability and liquidity. An attempt has been made in this paper to study the working capital components and the impact of working capital management on profitability of Hindalco Industries Limited. The
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EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY OF FIRMS IN MALAYSIA ( M. A.‚ Zariyawati a‚ M. N.‚ Annuar b and A.S.‚ Abdul Rahim c a ‚b & c Univeristi Putra Malaysia‚ Malaysia. ABSTRACT Working capital management is important part in firm financial management decision. An optimal working capital management is expected to contribute positively to the creation of firm value. To reach optimal working capital management firm manager should control the trade off between profitability and
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EXECUTIVE SUMMARY Study Topic: WORKING CAPITAL MANAGEMENT OF EASTMAN EXPORTS GLOBAL CLOTHING (P). Ltd. Objectives of the Study: To analyse the working capital management of the company. To determine the operating cycle of the unit (Spinning). To know the future need of working capital in the company. To render recommendations for effective management of working capital in the company. Time Span: A period of five financial year i.e. 2008-2011(3 Years) data has been used in the
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A Report On “working capital management in hcl infosystems limited” By (Submitted in partial fulfillment of the requirements of MBA program at ICFAI Business School‚ Chandigarh) ACKOWLEDGEMENT Achievement is finding out what you would be then doing‚ what you have to do. The higher the summit‚ the harder is the climb. The goal was fixed and we began with a determined resolved and put in ceaseless sustained hard work. Greater challenge
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