Page 42 - DCOM505_WORKING_CAPITAL_MANAGEMENT

Unit 2: Planning of Working Capital

7. What methods do you suggest for estimating working capital needs? Notes
8. Company A is having operating cycle of 15 days, B is having an operating cycle of 10 days
which company is having better position and why?

9. What recommendations would you make to improve the operating cycle of a company?
10. In your opinion, what would decrease the length of the cash cycle?

Answers: Self Assessment

1. Equity capital 2. Higher
3. Sweat Equity 4. Positive
5. Current assets 6. Operating cycle

7. True 8. False
9. False 10. Time
11. Improve 12. Evenly

13. Proportionate 14. Higher
15. Current liabilities 16. Larger
17. True 18. False
19. False 20. True

2.9 Further Readings

Books D.R. Mehta, Working Capital Management, Prentice-Hall Inc., 1974.

K.V. Smith, Management of Working Capital, McGraw-Hill, New York.
Khan and Jain, Financial Management, Tata McGraw-Hill.
Pandey, Financial Management, Vikas Annex. 54.J.3 -MBA - Finance - SDE Page
20 of 23.
Prasanna Chandra, Financial Management, Theory and Practice, Tata McGraw-Hill.
V.K. Bhalla, Working Capital Management – Text and Cases, Sixth Edition, Anmol
Publications.

Online links finance.mapsofworld.com
www.eurojournals.com/IRJFE_46_01.pdf

www.bizresearchpapers.com/Kesseven.pdf

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