WORKING CAPITAL MANAGEMENT ASSIGNMENT

Detail brief reasons whether the following action would result in increase
or decrease of total working capital requirements, presuming other factors
being constant.
(A) Increase in the credit period allowed to customers from 15 days to 30 days.
(B) Realisation of book debts by cash.
(C) Acquisition of additional fixed assets to increase production facilities.
(D) Change in the method of packing the product, involving no additional costs,
which improves the selling price.
(E) Credit sales.
(F) The decision to store, in a larger quantity, the new material, whose price is
expected to go up in future.
(G) Change in the method of deprecation.
(H) Bills receivable are received in place of sundry debtors
(I) A decision to pay immediate cash to raw materials’ suppliers for enjoying
cash discounts.
(J) Receipt of sanction of cash credit limit communication from bank for
working capital needs.
(K) Implementation of a scheme for reducing the production period.
(L) Strict recovery of debtors with close follow-up.
(M) A decision to increase the wages rates.