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Q. Example on Controlling working capital?
Describe how a manufacturing company could control its working capital levels and impact of the suggested control measures.
Solution:
Controlling working capital
Some of the practical aspects that could be taken to achieve this include:
1 Reducing average raw material inventory holding period
2 Increase the period of credit taken from suppliers
3 Reducing the time taken to produce goods and inventory holding period or finished inventories
4 Reducing average debt collection period
Q. Show Gross Vs net working capital? The distinction between the gross working capital or the net working capital does not in any way undermine the relevance of the concepts o
make an cash conversion cycle of cabbages
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