2. Analysis of the nature and purpose of financial management
within our organization.
Investment
Decision
• Capital Assets
• Working Capital
• Financial Assets
Financial
Decision
• Total Funding
• Internal vs. External
• Debt or Equity
• Long Term or Short Term
Dividend
Decision
• Profitability
• Cash Flow
• Growth
• Legal Restriction
• Shareholders Expectation

5. Primary aim:
Maximize
shareholder's
wealth
Maximize
profit
Maximize
sales to
get
market
share
Satisfice
Minimize
cost
Economy
•Quality
•Cheap
Effectiveness
•Purpose
Efficiency
•Proper strategy
Value for money

6. Shareholders
Dividend
Capital gain
Employees
Salary
Security
Promotion
Customers
Value
Quality
Service
Suppliers
Price
Payment
Debt holders
Security
Liquidity
Government
Taxable
profit
Inflation
from price
hike
Employment

7. Employee
•More salary
•Less dividend
Shareholders
•More wealth & dividend
•Less salary
Customers
•Better and longer
service
Employees
•Not happy to offer
extra service
Management
• More remuneration
• Short termism
• Risk seeker
• Reckless status investment
• Risky expansion by acquisition
Sharehoders
• Less remuneration and more dividend
• Long term benefit
• Risk adverse

8. Discussion on the nature of working capital and its
elements of our organization.

10. Application of the working capital ratios in the context of
our organization.
Raw material
Order placed
Stock arrives
Inventory period Acc. peceivable
Acc. Payable
Firm receives invoice Cash paid for materials
Sales
Operating c.
COC
Cash received

11. Analysis of the factors of determining working capital
requirement in our organization.
Receivables
Payables
Inventory
Cash

12. Key factors of working capital funding strategies of the
organization.

13. Assets
Fluctuating
Current asset
Short term funds
Short term funds or
Long term funds
Permanent current assets
Non current assets Long term funds
Time