Working Capital Management

CHAPTER 12 Introduction to Working Capital Cases

THE CASES IN THIS BOOK attempt to highlight specific working capital issues. The material includes a narrative that describes the company's situation along with financial data. It is not the intention of these cases to detail every working capital concern. Rather, the concept is to illustrate methods to gain further insight into a company and to think of ways to improve the financial efficiency and managerial insight.

SEQUENCE OF THE CASES

This chapter contains a comprehensive case: Widget Manufacturing, a consumer electronics manufacturing company. It is presented in three sections with questions; suggested solutions are at the conclusion to introduce the process of case analysis. In the next part of the book, cases for analysis are presented as a series of questions, with readers developing answers based on the facts presented and on external research. Suggested solutions are available on the instructor's website at www.wiley.com. They appear in the following order:

• Dinner Bell Hotel (a seasonal resort): cash budgeting and alternative actions
• Koala Fun (computer games and electronic arts): basic working capital issues for a small company
• Miller Building Supplies (building materials for contractors): general working capital concerns for a seasonal business
• Office Smart (communications and computer service): a small business that is considering a new banking relationship
• Quacker Cracker (specialty foods manufacturing): financial ...