THE PROBLEM OF WORKING CAPITAL MANAGEMENT IN THE MANUFACTURING INDUSTRIES IN NIGERIA

(A CASE STUDY OF EMENITE LIMITED)

By

EZE ARINZE OKOECHUKWU

Presented To

Department of Accountancy

ABSTRACT

This study was embarked upon to ascertain problems of working capital management in the manufacturing industries in Nigeria. The study has a total of three chapter and first chapter titled the introduction started with preamble.

The aims and objective of the study were duly light lighted in chapter one. The objectives of the study includes; to discuss how working capital are managed, to discuss the problems of working capital management in the manufacturing industries in Nigeria, it is likely to inform us of the avoidance of indebtedness in working capital management with the use of determinant of adequate amount of working capital. And finally, to make recommendation on ways of strengthening the positive contributions of manufacturing industrial sector to the national economy.

The more manufacturing industries management working capital, the greater the tendency to reduce indebtedness.

Also the significance of the study which include both the theoretical and piratical significance explained.

Chapter two included the literature review. Here the earlier works of erudite scholars, theories and analysts and its relevance to the study were analyzed.

Chapter three s where the finding of the research were light lighted which included, that heavy working capital should be invested in raw material for a firm to continue in production. Indispensably, manufacturing industries should maintain good working capital cycle, because it gives an in sight into the amount of cash investment required to finance current assets.

I equally recommended that the study should undertaken further and that working capital management should be the basis of granting loan to any manufacturing industry if profitable investment is to be made. I also recommended and verified before credit for than is granted. I finally concluded the chapters and the project by admonishing on the importance of utilizing the finding of the research.

TABLE OF CONTENTS

Title Page

Approval Page

Dedication

Acknowledgement

Abstract

Table of Content

CHAPTER ONE

1.0 Introduction

1.1 Background of the study

1.2 statement of problem

1.3 objective of the study

1.4 significant of the study

1.5 scope and limitations of the study

1.6 Definition of terms

CHAPTER TWO

2.0 Literature review

2.1 Working capital management (introduction)

2.2 components of working capital management

2.3 Classification of working capital

2.4 working capital cycle

2.5 Effects of inadequate working capital

2.6 Effects of excess working capital

2.7 Determination of adequate amount of working capital

2.8 Factors affecting the amount of investment

2.9 Sources of business finance

CHAPTER THREE

3.0 Summary of findings, recommendation and conclusion

3.1 Findings

3.2 Recommendation

3.3 Conclusion

Bibliography