1.1 WORKING CAPITAL CONCEPTS Business activity Business activity is dynamic in character and subject to wide fluxions. The movement from working capital to income and profits and back to working capital is one of the most important characteristics of business administration. This operation is concerned with the deployment of funds with the hope that they will generate returns‚ rendering an additional amount called profit. If the operations of an enterprise are to run smoothly‚ proper relation
Premium Inventory Working capital Steel
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-
Premium Debt Finance Economics
WORKING CAPITAL MANAGEMENT IN HERO HONDA - December 18th‚ 2008 This project tries to look into the WORKING CAPITAL MANAGEMENT IN HERO HONDA INDEX PARTICULARS 1. Company profile 2. Analysis & Comparison A. Working capital style in India B. Working capital style Abroad C. Working capital style in Automobile industry D. Working capital constituents E. Operating cycle F. Ratios G. Qualitative Analysis COMPANY PROFILE (COMPETITORS) TVS Motor Company’s
Premium Bajaj Auto Inventory
UNIVERSITY OF DHAKA Department of Finance MBA (Evening) Program Course: Working Capital Management Report on Working Capital Management Of Atlas Bangladesh Limited Submitted to M. Shahjahan Mina Professor Department of Finance University of Dhaka Submitted By Abul Jannat Jiban (18038) Md. Naharul Islam (18043) January 01‚ 2013 INTRODUCTION Working capital management is concerned with the problems arise in attempting to manage the current assets‚ the current liabilities and the inter relationship
Premium Inventory Balance sheet Working capital
analysis and interpretation Introduction to working capital “Working Capital is the Life-Blood and Controlling Nerve Center of a business” The working capital management precisely refers to management of current assets. A firm’s working capital consists of its investment in current assets‚ which include short-term assets such as: Cash and bank balance‚ Inventories‚ Receivables (including debtors and bills)‚ Marketable securities. Working capital is commonly defined as the difference between
Premium Inventory Balance sheet Asset
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
Premium Inventory Balance sheet
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
Premium Inventory Working capital
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
Premium Working capital Inventory Regression analysis
PROJECT REPORT On A STUDY OF “HDFC BANK” In the partial fulfillment of the requirement for the award of the degree of Bachelor of Commerce (Hons.) Submitted to: Submitted By: Mr. Vijay Verma sir Sky Breakers… ITM University Shubhangi Suhane Oshin Benjamin
Premium Bank
Financing working capital Working capital management is the management of the net of current assets and current liabilities with the objective of reaching the right balance between profitability and liquidity. The aim of managing inventory (stock)‚ trade receivables (debtors)‚ cash‚ trade payables (creditors)‚ is to obtain the right balance of all the current assets and current liabilities at any given time so that the achieve the objectives of working capital management in the form of profitability
Premium Finance Investment Inventory