Page 6 - PowerPoint Presentation
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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.)




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