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working capital management (Objective of W.C ([1] to meet day to day…
working capital management
w.c.m involve managing
Account Payble
Account Receivable
W.c.Financing
Inventories
cash
TYPES OF WORKING CAPITAL
Basis of Time
[1] permanent Fixed W.C
Regular W.C
Reserve W.C
[2] Temparary Variable W.C
[1] Seasonal W.C
[2] Special W.C
basis of concept
[1] Gross . W.C
[2] NET W.C
Objective of W.C
[1] to meet day to day operations
[2] purchase of raw materails and spares
[3] payment of wages and salary
[4] provide credit obligation
[5] smooth flow of business
[6] to increase the productivity of the business
[7] Deciding optimum Level of Investment in W.C. Assets
importance of working capital management
[1] W.C.M .affects the company risk return
[2] Require continous day to day managerial supervision
[3] raises Goodwill
[4] maintain Liquidity
[5] Easiley Borrowing of funds
[6] Benefit of economical purchase
[7] Increasing production efficiency