THE ROLE OF WORKING CAPITAL MANAGEMENT AS A TOOL EFFECTIVENESS IN THE NIGERIA BANK

TABLE OF CONTENT

Title page                                                                                 i

Certification                                                                                      ii

Dedication                                                                               iii

Acknowledgement                                                                    iv-v

Table of contents                                                                     vi-viii

Proposals                                                                                 ix

CHAPTER ONE

1. General introduction                                                      1
   1. Background of the study                                                1
   1. Statement of the problem                                               2
   1. Justification of the study                                               4
   1. Objective of the study                                                     6
   1. Scope of the study                                                         8
   1. Limitation of the study                                                   8
   1. Plan of the study                                                            9
   1. 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

1. 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.

1. Does effective stock management increase organization performance?
2. Does cash management enhance business survived
3. Does the debtor’s management increase business sales and profit?
4. Why is the need to invest incurred assets?
5. How many inventories are to be carried out and how de we get funds in pay for them?
6. What should be the proportion of long term and short term funds to finance current assets?
7. How the working capital management if finance and organization?
8. How many funds to finance should be invested in each type of current assets?