Working capital management of Cosmopolitan Communications Ltd.

Abstract

This report is about working capital Management of Cosmopolitan Communications Ltd. It discusses how Cosmopolitan Communications Ltd. Manages its working capital. Working capital is current asset minus its current liabilities. There are mainly 3 elements is working capital management and those are accounts receivable/payable, cash management, inventory management . A company must manage its working capital so to ensure profitability. This report discusses how Cosmopolitan Communications Ltd. Manages its account recivable, how they collect cash from customers , what are the policies , credit period , the time it takes to collect money etc. It also discusses how a company pays to their vendors, what are the obstacles a company faces, how much time they take to pay their vendors etc. A company should manage its accounts revivable and account payable efficiently to run the organization smoothly. A company should also manage its cash efficiently .This report also discusses about the effective tools or ways the company uses to manage its cash .Managing inventories and warehouse is also an important factor and this report discusses about inventory management of Cosmopolitan Communications Ltd. It also shows the graphical representation of sales and expenses. The relationship between current asset and current liability is shown through a graph as well. Furthermore, the report shows the net profit/loss of this company and also the monthly sales for a specific period and how it has been increased .This report shows both the positive and negative side of this company and it also suggests the improvement of this company in the end.