• Understand the two definitions of net working capital
• Discuss, in terms of profitability and risk, the aggressive financing strategy and the conservative financing strategy for total-permanent and seasonal-fund requirements
• Analyse the need for working capital as related to operating/cash cycle, permanent and temporary working capital
• Describe in general terms the factors having a bearing on the total quantum of working capital required
• Review the computation of working capital, using both the cash cost approach and the operating cycle approach
