Please respond if you can complete in 8 hours

Total 1050+ words( please follow instructions carefully)

Working Capital Management

paper 1-part 1-250-300 words

paper 2-part 2-250-300 words

paper 3-3 responses-150 words response each (3 responses-450 words)--------------

Write 250-300 words for part 1, Write 250-300 words for part 2 and respond to three articles with 150+ words each.

Follow Video Links for instructions

1) Importance of working capital management - YouTube

https://www.youtube.com/watch?v=iNm8sNDjDgs&feature=emb_logo

2) Cash Conversion Cycle - YouTube

https://www.youtube.com/watch?v=maF024vY1es&feature=emb_logo

Cash Budget

Close to 50% of the typical industrial and retail firm's assets are held as working capital. Many newly minted college graduates work in positions that focus on working capital management, particularly in small businesses in which most new jobs are created in today's economy.

To prepare for this Discussion: Shared Practice, select two of the following components of working capital management: the cash conversion cycle, the cash budget, inventory management, and credit policies. Think about scenarios in which your selected topics were important for informing decision making. Be sure to review the video links above and conduct additional research using academically reviewed materials, and your professional experience on working capital concepts to help develop your scenarios

Part 1 : Select 1st topic among (the cash conversion cycle, the cash budget, inventory management, and credit policies.)-2 references

Part 2: Select 2nd topic among (: the cash conversion cycle, the cash budget, inventory management, and credit policies.) 2 References

Two topics must be different

Part 3->

3 Responses

Instructions

In your response to the discussions posted, consider comparing cash generation techniques at your company versus his or her company. Draw distinctions based on the industry and tell your colleagues why those distinctions are necessary for the management of cash flow.

Below are additional suggestions on how to respond to discussions:

· Ask a probing question, substantiated with additional background information, evidence or research.

· Share an insight from having read your colleagues’ postings, synthesizing the information to provide new perspectives.

· Offer and support an alternative perspective using readings from the classroom or from your own research.

· Validate an idea with your own experience and additional research.

· Make a suggestion based on additional evidence drawn from readings or after synthesizing multiple postings.

· Expand on your colleagues’ postings by providing additional insights or contrasting perspectives based on readings and evidence.

1) Respond to 1st article with 150+ words Excluding references

Introduction

Capital management is a vital and sensitive part of the organization that people should be very cautious when working with. There should be some fiscal policies for management. There should be procedures that will stabilize some contingencies that might be unforeseen that may cause an organization or a company to run into financial losses. The managers and other top management officials must try to understand the assets and liabilities that a company ha currently and how this contributes to people's response to the stock and the organization's progress in general.

Cash Conversion Cycle

This is a rhythmic cycle that deals with how effective and efficient the company's management is in the capital and the overall performance. Its measures how healthy the organization is as well.  In most cases in capital management, the conversion cycle is interested in the company's ability to convert the cash that they have at hand into inventories and a payable account. This is mostly through receivable accounts and sales, and then the whole process, the amount that it gives to the company in terms of cash. This is a very important component in the management of capital because once profit generated from the organization is not used to generate more profit, it means that the company will stop making a massive profit. But once the cash is cycling and flowing, the company can make massive profits, which is one of the most goals as to why the companies and organizations engage in businesses. For example, a small amount of money is used to buy assets used in the selling organization. When the whole stock is sold, its means that the person or the company, in the long run, will have the cash in hand which he invested, and at the same time, he will be having the profit, which he could not have got if he had not invested there, (Le, 2019).

Credit policies

One of the best things to know how to deal with working capital management is to know when to give credit and when not to give credit. It is also important that the organization know who is eligible for giving credit and who will not be eligible. Giving credit has got a positive and negative impact. The positive one is that it might retain customers, especially those that will repay.  For example, the negative impact is that you can give to someone then he will not repay the debt, which means that the company will have to run into loss so that it can be able to recover the loss. Managers must be very specific about credit giving so that the company will not run into a loss. There should be very specific policies that are supposed to be put in place so as to ensure there are no losses that comes as result of giving credit, (Le, et al, 2018).

Conclusion

There are many ways of working on capital management. It is important that a company and organization choose the best for it and which will give them profit at the end of everything.

References

Le, H. L., Vu, K. T., Du, N. K., & Tran, M. D. (2018). Impact of working capital management on financial performance: The case of Vietnam. International Journal of Applied Economics, Finance and Accounting, 3(1), 15-20. Retrieved from: https://ideas.repec.org/a/oap/ijaefa/2018p15-20.html

Le, B. (2019). Working capital management and firm’s valuation, profitability and risk. International Journal of Managerial Finance. Retrieved from: https://www.emerald.com/insight/content/doi/10.1108/IJMF-01-2018-0012/full/html

2) Respond to 1st article with 150 words + words Excluding references

In the present world, many of the industries and some kind of typical retail firm assets make 50 Percent of their income as the working capital. In this type, there will be two categories they are. Cash conversion cycle and also the working capital management (Hassan, 2020).

Working capital management: this kind of capital is not the complete money but a kind of money which is used for the capital. There are two types of working capital they are short term liability and short-term assets. Any company will keep 50 percent of its income as the working capital. To say it in practical words working capital is just like cash which is required to run the company maybe for a week or a month or even a year to maintain the operations which will be happening in the business. Working capital management is nothing but a kind of process through which any company or any kind of business groups can manage the short-term assets and also the short-term liabilities which can be very useful to maintain the liquidity in a sufficient manner and also can be used to run any kind of operations in the business very smoothly (Orsag, 2018).

Cash conversion cycle: the cash conversion cycle is nothing but a calculation of money between the time of the project approval and at the end of the project that is at the sales time. In this between all the labor charges and also the extra charges required for the completion has also to be calculated. In these calculations, even the money for the raw materials also to be added. Upon all these calculations the profit for the project is calculated. This whole process revolves in a cycle manner and that cycle mainly talks about the cash so it is named the cash conversion cycle (Lau, 2019).

  

References

Hussain, S., & Hassan, A. A. G. (2020). The Reflection of Exchange Rate Exposure and Working Capital Management on Manufacturing Firms of Pakistan. Talent Development & Excellence, 12(2).

Korent, D., & Orsag, S. (2018). The impact of working capital management on profitability of Croatian software companies. Zagreb International Review of Economics and Business, 21(1), 47-66.

Loo, P., & Lau, W. (2019). Key components of working capital management: Investment performance in Malaysia. Management Science Letters, 9(12), 1955-1964.

3) Respond to 1st article with 150 words + words Excluding references

The capital of a business which is utilized in its step by step exchanging tasks, determined as the current resources short the present liabilities. Working capital is additionally called working resources or net current resources. Working Capital and change in working capital, particularly in inventories, which is one of the segments of working capital structure a significant piece of the all-out gross-capital arrangement in the paper organizations. Proficient and the ideal use of fixed resources are intently identified with the correct administration of working capital (Moussa, 2018). The measure of such working capital continues fluctuating every once in a while, based on business exercises. At the end of the day, it speaks to extra current resources required on various occasions during the working year. For instance, the extra stock must be kept up to help deals during the pinnacle deals period. The requirement for extra interest in working capital is reliant on the sort and size of speculation, the size, and development of the market, the development of the relative peace of the pie furthermore, length of the arranging skyline (Amin, 2020).

The significance of sufficiency of working capital can barely be over-accentuated. John L. O. Donnell and Milton S. Glad berg watch "Numerous multiple times business disappointment happens because of the absence of working capital. Expounding it we can say that any asset report thing that speaks to the current liquidity position of the firm is being financed by a store called working capital that is it is the committed store which we require to use in our business (Mohamed Lotfy, 2019).

 

Reference

Moussa, A. A. (2018). The impact of working capital management on firms’ performance and value: Evidence from Egypt. Journal of Asset Management, 19(4), 259-273.

Taghipour, M., Machiani, H. H., & Amin, M. (2020). The Impact of Working Capital Management on the Performance of Firms Listed in Tehran Stock Exchange (TSE). Journal of Multidisciplinary Engineering Science and Technology (JMEST), 7(6), 12146-12154.

Yasser Badran, N., Mohamed El-Sawy, M., Ahmed Ezzat, Y., Essam Shehata, A., & Mohamed Lotfy, L. (2019). The Impact of working capital management on firm’s profitability.