Managing Working Capital and Preparation of Cash Flow Statements
Aims & Objectives
To clearly identify and define the Working Capital of a company whether an SME or multinational
To apply specific techniques to the management of Working Capital to achieve targeted levels
To link the management of Working Capital and the management and control of Cash Flow
To prepare cash flow statements to enable effective control of Working Capital
Skills Learned?
The use of accounting information as shown in the Balance to identify the Working Capital of a company which is described as both Current Assets and Current Liabilities
The use of financial techniques to control the levels of Working Capital, such as Just in Time( JIT) and Debtors (Receivables ) and Creditors (Payables)
The use of Cash Flow Statements to monitor current levels of cash and plan future levels
Understanding the concept of the Cost of Capital and the targeting of acceptable levels of the Return on Capital Employed ( ROCE )
Content
Explaining the management of Working Capital in the context of a necessary commitment by sections /departments within a company and the sharing of management responsibilities
Identifying the nature of Working Capital as shown in the Balance Sheet under the headings of Current Assets and Current Liabilities
Applying Liquidity Ratios to the measurement of Working Capital levels required to remain solvent
Using case studies of real companies to illustrate the actions to be taken to achieve targeted levels of Working Capital
Examining the link between the effective management of Working Capital and Cash Flow
Providing interactive opportunities for discussion and questions
Who Should Attend?
People who are involved in any aspect of a firm’s Working Capital including the Current Assets and Current Liabilities of the company