Working Capital

1. Briefly describe the Working Capital & Liquidity Management and its Significance for the survival of the Companies.

2. State the Factors that defines the nature and level of Working Capital in an Organization

3. State the Procedures for efficient management of Inventory & receivable Management.

4. Briefly describe the Cash Operating Cycle and state the formula.

Calculate the Working Cycle ($ & days) of Qatar plc from the following data and draw the Working Capital Cycle

31^st Dec2018 31^st Dec 2019

Inventory 6,000 7,000

Receivables 3,500 5,000

Payables 2,800 2,800

Briefly Comment (improve or worse) on the Working Capital calculated above. Provide the reason of the Statement that Lower the Working Capital the better it is