EFFECTIVE WORKING CAPITAL MANAGEMENT IN PAINT INDUSTRIES

(A CASE STUDY OF MARSHAL PAINT AND CHEMICAL LIMITED ENUGU – ENUGU STATE)

By

AKWUEBUE IFEYINWA . C . AC/ H2002 / 352

Presented To

Department of Accountancy

    It is the intention of this researcher to study and investigate in the paint industry the relevance effect and the importance of effective working capital man. A case study of Marshal paints and chemical company Ltd Enugu. This research proposal is concerned with the identification of liquidity and cash management of Marshal paints and leading paint company east of Niger. Finding solutions to the problems so identified and recommending them to the management for approval and implementation.
    In the pilot study carried out by the researcher several discoveries wee made as to why the working capital management of the company is undertaken by a separate department.
    Amongst these are efficient inventory management which results in maintenance of smooth production process, survival, profitability and growth.
    The scope covered include the paint factory in Enugu and Anambra state and it is the researchers believe that the study will be of much benefit to the company, the wholesalers, retailers and consumers.
    Finally, two approaches were used in collected data for the research. These are primary and secondary data.
 

TABLE OF CONTENT

Title Page                                     II
Approval page                                 III
Dedication                                     IV
Acknowledgement                             VI
Table of content                                 VIII

CHAPTER ONE
1.1    Introduction                             1
1.2    Statement of problem                         3
1.3    Objective of the study                         5
1.4    Research hypothesis                         7
1.5    Assumption of the study                         8
1.6    Scope of the study                             9
1.7    Significance of the study                         9
1.8    Limitations of the study                         11
1.9    Historical background of Marshal paints & Chemical company13
1.10    Organisation of the study                     15
1.11    Definition of operational terms                  16

CHAPTER TWO
2.0    Review of related literature                      21
2.1    Meaning of working capital                     21
2.2    Composition of working capital                 23
2.3    Factors of affecting the composition of working capital     24
2.4    Current assets                             26
2.5    Current liabilities                             28
2.6    Management of working capital                 29
2.7    Types of working capital                         30
2.8    Characteristics of working capital                 30
2.9    Sources of  working capital                     31
2.10    Uses of working capital                         33

CHAPTER THREE
3.0    Research methodology and procedures             37
3.1    Selection of data                             38
3.2    Collection of data                             38
3.3    Nature of data analysis                         41

CHAPTER FOUR
4.1    Data presentation and analysis                     45
4.2    Presentation of data                         46
4.3    Analysis                                 47

CHAPTER FIVE
5.0    Summary and recommendation                     69
5.1    Summary and findings                         69
5.2    Recommendations                             71
    Bibliography                             74
    Questionnaire                             77