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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.

Prerequisite(s)

FMGT 1100 or FMGT 1105

Credits

2.5

This course isn't currently offered through BCIT Part-time Studies. Please check back next term or subscribe to receive email updates.

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

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