British Columbia Institute of


FMGT 2540 - Working Capital Management

Financial Management Part-time Studies Course

School of Business

Course Details

Enables students to understand the relationships between current assets and current liabilities in different types of organizations, to appreciate the trade-offs inherent in a firm's working capital policy and to carry out a basic analysis of a firm's working capital management in comparison to others.


FMGT 1100 or FMGT 1105





Spring/Summer 2018

Below is one offering of this course for the Spring/Summer 2018 term.

CRN 60440

Mon Jun 11 - Mon Jul 23 6 Weeks

Class Meeting Times

Dates Days Times Locations
Jun 11 - Jul 23 Mon/Wed 13:30 - 16:30 BBY SW01 Rm. 2030


Terry Gordon

Course Outline




  1. No class July 2nd

Learning Outcomes

Upon successful completion, the student will be able to:

  • Identify working capital management considerations for permanent components, the impact of sales/production schedules and liquidity versus risk.
  • Solve financial ratios that measure profitability, asset utilization, liquidity, and debt utilization.
  • Prepare a cash budget and explain its various uses by a firm.
  • Identify the cash flow cycle of the firm.
  • Differentiate the risks and profitability of financing assets in terms of hedging.
  • Analyze the major elements of cash management.
  • Interpret accounts receivable as an investment from the firm's credit policies, outline the considerations in granting credit, and evaluate a credit decision that changes credit terms to stimulate sales.
  • Assess trade credit as a form of financing and calculate its cost if the discount is forgone.
  • Analyze short term bank financing and calculate interest rates for various types of loans.
  • Evaluate inventory as an investment and apply techniques to reduce the costs of this investment.

Effective as of Winter 2016

Related Programs

FMGT 2540 is offered as a part of the following programs:

School of Business

  1. Accounting
    Full-time   Diploma
  2. Accounting
    Part-time   Diploma
  3. Finance
    Full-time   Diploma
  4. Finance
    Part-time   Diploma
  5. Financial Planning
    Part-time   Diploma
  6. Financial Planning
    Full-time   Diploma

Books & Supplies

The BCIT bookstore carries textbooks, general reference books, software, and stationery. Please visit for more information.

Spring/Summer 2018

Books for Spring/Summer 2018 offerings of this course are available in the following BCIT online bookstores. Please choose the bookstore appropriate for the offering you are considering.

BCIT Burnaby Bookstore

If you are taking this course, but are not taking it through either Distance Education or Online Learning, nor at the BCIT Downtown Campus (DTC), please purchase books for this course at the BCIT Burnaby Bookstore.

Image not available
Cei Digital : Foundations Of Finanacial Mgmt W/Connect
Author Block
Binding Digital Version
ISBN 978-1-25910-898-3
Price $89.00
Choose One

Foundations of Financial Management
Author Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Publisher McGraw-Hill Ryerson
Copyright 2015
Binding Hardback
ISBN 978-1-25902-497-9
Price $175.50
Choose One


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Contact Information

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Registration News

Registration is currently open for the Spring/Summer 2018 term.

A sneak preview of Fall 2018 term courses is also now available here.

Students may register for Fall 2018 term courses online, by phone, mail or in-person starting Wed, May 30 at 9:00 am (PDT).

Classroom Locations

Classroom locations are subject to last minute changes. Please check the Part-time Studies Classroom Locations listing at on the first day of any course you are registered for.

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