Your SlideShare is downloading. ×
Working Capital Management-B.V.Raghunandan
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Working Capital Management-B.V.Raghunandan

1,004
views

Published on

deals with working capital, its management and determination

deals with working capital, its management and determination

Published in: Economy & Finance

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,004
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
42
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Module 5 Working Capital Management
  • 2. Meaning of Working Capital
    • Finance needed for meeting day-to-day expenses
    • Gross Working Capital
    • Net Working Capital
    • Permanent Working Capital
    • Temporary Working Capital
  • 3. Factors Determining the Size of Working Capital
    • Nature of Business
    • Scale of Operation
    • Length of Operating Cycle:
    • Rapidity of Turnover
    • Nature of Demand
    • Level of Automation
    • Reliability of Supply
    • Credit Policy
    • Suppliers ’ Credit
    • Level of Profits
    • Banking Norms
    • Taxes
    • Dividend Policy
    • Operative Efficiency
  • 4. Concept of Operating Cycle
    • Raw Material Conversion Period
    • Work-In-Progress Conversion Period
    • Finished Goods Conversion Period
    • Book Debt Conversion Period
  • 5. Components of Working Capital Method
    • A) Current Assets
    • 1) Inventory
    • (+) (2) Debtors
    • (+) (3) Cash in hand & at bank
    • (+) (4) Prepaid Expenses & Accrued Income
    • Gross Working Capital---
    • (B) Current Liabi lities
    • ( – ) Creditors/Bills Payable
    • ( – ) Expenses Outstanding
    • (Incl. lag in expenses)
    • Net Working capital
  • 6.
    • The figures relating to a trading firm are given below. Estimate the Working Capital requirement of the concern.
    • (a) Estimated sales-2, 00,000 units @ Rs. 12 per unit
    • (b) Net Profit on sales @ 30%
    • (c) Customers are allowed a credit period of 2 months
    • (d) Suppliers also allowed a credit period of 2 months
    • (e) Average Inventory holding period -3 months
    • (f) Provide 10% for contingencies
    • (g) Cash in hand is estimated to be Rs. 40,000
    •  
  • 7.  
  • 8.  
  • 9.  
  • 10.  
  • 11.  
  • 12.