TABLE OF CONTENT
Title page i
Certification ii
Dedication iii
Acknowledgement iv-v
Table of contents vi-viii
Proposals ix
CHAPTER ONE
- General
introduction 1
- Background of the study 1
- Statement of the problem 2
- Justification of the study 4
- Objective of the study 6
- Scope of the study 8
- Limitation of the study 8
- Plan of the study 9
- Definition of terms 10
CHAPTER TWO
- Literature
review 12
- Working capital management 12
- Working capital circle 17
- Components of working capital management 17
- Cash
management 18
- Important of cash/ sources of funds 19
- Cash versus profits 24
- Cash planning 24
- Inventory/ Stock management 24
- Determine
the optimum cash balances 27
- Optimum cash balance under certainty 28
- Inventory/ Stock management 35
- Ascertainment of cost 38
- Reasons for holding stock 42
CHAPTER THREE
- Research
methodology 43
- Introduction 43
- Research type 43
- Research
methodology procedures 44
- Research design 44
- Data specification 44
- Population of the study 45
- Sample size 46
- Generalization of sample size 46
- Data collection instruments 47
CHAPTER FOUR
- Finding
and analysis of data 51
- Characteristics of sample 51
- Analysis of individual statement 57
CHAPTER FIVE
- Summary,
conclusion and recommendation 67
- Summary 67
- Conclusion 68
- Recommendation 68
- Limitation of the study 70
- Suggested area of the study 71
Bibliography 72
PROPOSAL
This work of project based on the working capital management as a tool for business survival is classify into five different chapters. Which the chapter one based on the general introduction, background of the study, statement of the problems justification of the study and objective of the study, scope of the study and plan of the study.
While chapter two relies on literature review with sub-division of working capital management working capital circle, component, cash management important of cash management, cash planning and inventory stock management.
Chapter three based or research, methodology with the sub-division of research types, research methodology procedures, research design, data specification population of the study, sample size, generalization of sample, unique, method of union bank of Nigeria plc.
Also chapter four based on finding and analysis of data, characteristics of sample of individual statement.
Lastly chapter five which comprised with the summary, conclusion and recommendation, limitation of the study, suggested areas of the study and bibliography.
CHAPTER ONE
- GENERAL INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The prevailing economics situation is a resulting largely from extensive mismanagement of the country; resources have made issues of management, one of the paramount importance in the business world where the financial organization sector has a pervasive influence: the management of working capital cannot be overemphasized.
Working capital management can be said to the life blood for the sustenance of any organization the study of financial organization is incomplete without an in-depth, thoroughly and critical analysis of techniques of its working capital management.
Working capital is concerned with:
- Financial of working capital component
- Investment in asset
- Usage of working capital
It is the art of science of planning organization directing, controlling and utilization of working capital component as well as determines the appropriates mix of working capital management. It can also defined as that aspect of managerial finance or management accounting, which is concerned with the activities involved in sourcing financing and investing in the components of working capital.
In managing working capital, companies separate current execution into their component units for policy formulation and execution. This is because are of different nature, which makes it imperative that they will be considered and managed under a unique appropriate.
1.2 STATEMENT OF THE PROBLEM
The strategic role that working capital management plays in all organization cannot be over-looked.
This implies that working capital management is the main pillar of the sustenance of any financial organization.
The study or organization financial statement in incomplete without a thoroughly and perfect understanding of the techniques of its working capital management.
In examine the management of working capital answers to the following questions.
- Does effective stock management increase organization performance?
- Does cash management enhance business survived
- Does the debtor’s management increase business sales and profit?
- Why is the need to invest incurred assets?
- How many inventories are to be carried out and how de we get funds in pay for them?
- What should be the proportion of long term and short term funds to finance current assets?
- How the working capital management if finance and organization?
- How many funds to finance should be invested in each type of current assets?