Page 8 - PowerPoint Presentation

MANAGEMENT OF WORKING CAPITAL

Outcomes

• Analyse an entity’s accounts receivable, inventories,

accounts payable and total working capital, and suggest

improvements.

• Calculate and evaluate the effect of changes in credit

terms/policy.

• Analyse the entity’s financing of working capital and
suggest improvements.

• Discuss the role of IT systems (incl Enterprise Resource

Planning (ERP) and Customer Relationship

Management (CRM) systems) in working capital
management.

• Assess an entity’s cash management and make

recommendations for improvement (You can exclude

the Baumol and Miller-Orr models.)

8