SEMESTER 1 AND 2 FROM 2017 TO 2019
FIN3702/101/3/2017
Tutorial Letter 101/3/2017
FINANCIAL MANAGEMENT:
Working Capital Management
Semesters 1 and 2
Department of Finance,
Risk Management and Banking
IMPORTANT INFORMATION
Please register as a user of myUnisa as soon as possible. It is free of charge. Visit https://my.unisa.ac.za
for details. At myUnisa you will be able to get in touch with fellow students, to submit your assignments, to
update your details, to find self-assessment questions (where applicable), as well as to participate in
discussion forums. Therefore, activate your myUnisa and myLife e-mail addresses and ensure that you
have regular access to the myUnisa module website for FIN3702-2017, S1 or S2. It is also important that
you provide Unisa with your cellular number because important announcements may be sent to you via
SMS.
Please note that this module is presented online only. All study material will be made available on
myUnisa under the “Official Study Materials” option and/or under “Learning Units”. However, in
order to support you in your learning process, you will also receive some study material in printed
format.
Please note that this module carries a weight of 12 credits and requires at least 120 hours of study,
including the time required to complete the assignments and prepare for the examination. Devote at least
120 hours to this module to ensure your success. Take note of Rule 12 contained in the Study @ Unisa
brochure. You must pass at least four modules of 12 credits each or two modules of 24 credits each per
year. Students who do not comply with this requirement will be excluded from further admission to the
University.
BARCODE
, CONTENTS
Page
1 INTRODUCTION .......................................................................................................................... 3
2 PURPOSE OF AND OUTCOMES FOR THE MODULE............................................................... 3
2.1 Purpose ....................................................................................................................................... 3
2.2 Outcomes .................................................................................................................................... 3
3 LECTURERS AND CONTACT DETAILS ..................................................................................... 4
3.1 Lecturers ..................................................................................................................................... 4
3.2 Department .................................................................................................................................. 4
3.3 University .................................................................................................................................... 4
4 RESOURCES ............................................................................................................................... 5
4.1 Prescribed book .......................................................................................................................... 5
4.2 Recommended book................................................................................................................... 5
4.3 Electronic reserves (e-reserves) ................................................................................................ 5
5 STUDENT SUPPORT SERVICES ................................................................................................ 5
6 STUDY PLAN ............................................................................................................................... 5
7 PRACTICAL WORK AND WORK-INTEGRATED LEARNING ..................................................... 6
8 ASSESSMENT ............................................................................................................................. 6
8.1 Assessment plan ........................................................................................................................ 6
8.2 General assignment numbers .................................................................................................... 7
8.2.1 Unique assignment numbers ..................................................................................................... 7
8.2.2 Due dates for assignments ........................................................................................................ 7
8.3 Submission of assignments....................................................................................................... 7
8.4 Assignments ............................................................................................................................... 8
9 OTHER ASSESSMENT METHODS ........................................................................................... 32
10 EXAMINATION ........................................................................................................................... 32
11 FREQUENTLY ASKED QUESTIONS ........................................................................................ 32
12 SOURCES CONSULTED ........................................................................................................... 32
13 CONCLUSION............................................................................................................................ 33
2
, FIN3702/101
1 INTRODUCTION
Dear Student
Welcome to the module Working Capital Management (FIN3702). You have enrolled for an
interesting, but challenging module. In order to pass the module you will need to devote at least
two hours per day to reading and summarising, as well as practicing the calculations. With this
in mind, we hope that you will enjoy this module.
1.1 To get started
Please note that this module is presented fully online and you therefore need to go online to
view your study material and complete the learning activities for this course. Go to the website
https://my.unisa.ac.za and login with your student number and password. You will see the
FIN3702-17-S1/S2 module site in the row of modules in the orange blocks across the top of the
webpage. Remember to also check in the “more sites” tab if you cannot find it in the orange
blocks. Click on the module that you want to open and read the Welcome Page.
We wish you success on your academic journey!
2 PURPOSE OF AND OUTCOMES FOR THE MODULE
2.1 Purpose
The purpose of this module is to equip you with the necessary skills and knowledge required to
manage cash flows within a business, to do financial planning and to manage the working
capital of a business efficiently. To attain these outcomes, you will be expected to understand
the underlying theories and principles in working capital management and to apply these
principles to the practical work environment through practical case-study scenarios pertaining to
a business.
Please note that this module covers only three chapters in the prescribed book with some topics
adequately supplemented by notes in the study guide. Therefore, we expect you to cover this
material within reasonable time in order to complete your assignments and prepare for the
examination. You will be expected to cover the relevant study units in your study guide in
conjunction with the prescribed chapters to complete your assignments (see section 8.4.1).
2.2 Outcomes
On completion of this module, you should be able to do the following:
Demonstrate a knowledge and understanding of cash flows and financial planning
within an organisation, with emphasis on the operational plan of the business.
Interpret net working capital fundamentals.
Demonstrate a knowledge and understanding of the functioning of the cash conversion
cycle.
Demonstrate a knowledge and understanding of the management of inventory
Demonstrate a knowledge and understanding of the management of accounts
receivable.
Demonstrate a sound knowledge and understanding of short-term financing through
current liabilities.
3
, 3 LECTURERS AND CONTACT DETAILS
3.1 Lecturers
Any enquiries of an academic nature concerning this module, such as an enquiry about specific
content within your prescribed book, study guide and/or assignment may be directed to:
LECTURER CONTACT DETAILS OFFICE NUMBER
012 429 4684
E-mail: AJH van der Walt Building
Mr SJ Kasozi
Fax2email: 086 569 8844 5-86
Skype: Kashogij1
012 429 4493
AJH van der Walt Building
Mr AM Phenya E-mail:
5-83
Fax2email: 086 641 5387
Miss Z Yousuf 012 429 6777 AJH van der Walt Building
E-mail: 5-88
Please note that telephonic inquiries may only be done during office hours. Our
availability schedules for both telephonic and online interactions are as follows:
Lecturer Online Availability on myUnisa Telephonic enquiries
Mr SJ Kasozi Monday-Wednesday (14pm - 16pm) All weekdays (10am - 12pm)
Miss Z Yousuf Friday (12pm - 15pm) All weekdays (2pm - 4pm)
3.2 Department
This module is presented by academic staff members from the Department of Finance, Risk
Management and Banking (DFRB).
Please note that you may get in touch with fellow students, download study material, submit
assignments, change your address and/or examination venue, view your assignment marks,
download previous examination papers and get in touch with your lecturer at
https://my.unisa.ac.za.
You may also call 012 429 3603 for academic enquiries.
E-mail queries may be sent to .
3.3 University
Administrative queries may be directed to the appropriate department as indicated in the Study
@ Unisa brochure. Examples of administrative queries are registration matters, study material
matters, account queries and graduation issues. Registration matters must be directed to
.
4
FIN3702/101/3/2017
Tutorial Letter 101/3/2017
FINANCIAL MANAGEMENT:
Working Capital Management
Semesters 1 and 2
Department of Finance,
Risk Management and Banking
IMPORTANT INFORMATION
Please register as a user of myUnisa as soon as possible. It is free of charge. Visit https://my.unisa.ac.za
for details. At myUnisa you will be able to get in touch with fellow students, to submit your assignments, to
update your details, to find self-assessment questions (where applicable), as well as to participate in
discussion forums. Therefore, activate your myUnisa and myLife e-mail addresses and ensure that you
have regular access to the myUnisa module website for FIN3702-2017, S1 or S2. It is also important that
you provide Unisa with your cellular number because important announcements may be sent to you via
SMS.
Please note that this module is presented online only. All study material will be made available on
myUnisa under the “Official Study Materials” option and/or under “Learning Units”. However, in
order to support you in your learning process, you will also receive some study material in printed
format.
Please note that this module carries a weight of 12 credits and requires at least 120 hours of study,
including the time required to complete the assignments and prepare for the examination. Devote at least
120 hours to this module to ensure your success. Take note of Rule 12 contained in the Study @ Unisa
brochure. You must pass at least four modules of 12 credits each or two modules of 24 credits each per
year. Students who do not comply with this requirement will be excluded from further admission to the
University.
BARCODE
, CONTENTS
Page
1 INTRODUCTION .......................................................................................................................... 3
2 PURPOSE OF AND OUTCOMES FOR THE MODULE............................................................... 3
2.1 Purpose ....................................................................................................................................... 3
2.2 Outcomes .................................................................................................................................... 3
3 LECTURERS AND CONTACT DETAILS ..................................................................................... 4
3.1 Lecturers ..................................................................................................................................... 4
3.2 Department .................................................................................................................................. 4
3.3 University .................................................................................................................................... 4
4 RESOURCES ............................................................................................................................... 5
4.1 Prescribed book .......................................................................................................................... 5
4.2 Recommended book................................................................................................................... 5
4.3 Electronic reserves (e-reserves) ................................................................................................ 5
5 STUDENT SUPPORT SERVICES ................................................................................................ 5
6 STUDY PLAN ............................................................................................................................... 5
7 PRACTICAL WORK AND WORK-INTEGRATED LEARNING ..................................................... 6
8 ASSESSMENT ............................................................................................................................. 6
8.1 Assessment plan ........................................................................................................................ 6
8.2 General assignment numbers .................................................................................................... 7
8.2.1 Unique assignment numbers ..................................................................................................... 7
8.2.2 Due dates for assignments ........................................................................................................ 7
8.3 Submission of assignments....................................................................................................... 7
8.4 Assignments ............................................................................................................................... 8
9 OTHER ASSESSMENT METHODS ........................................................................................... 32
10 EXAMINATION ........................................................................................................................... 32
11 FREQUENTLY ASKED QUESTIONS ........................................................................................ 32
12 SOURCES CONSULTED ........................................................................................................... 32
13 CONCLUSION............................................................................................................................ 33
2
, FIN3702/101
1 INTRODUCTION
Dear Student
Welcome to the module Working Capital Management (FIN3702). You have enrolled for an
interesting, but challenging module. In order to pass the module you will need to devote at least
two hours per day to reading and summarising, as well as practicing the calculations. With this
in mind, we hope that you will enjoy this module.
1.1 To get started
Please note that this module is presented fully online and you therefore need to go online to
view your study material and complete the learning activities for this course. Go to the website
https://my.unisa.ac.za and login with your student number and password. You will see the
FIN3702-17-S1/S2 module site in the row of modules in the orange blocks across the top of the
webpage. Remember to also check in the “more sites” tab if you cannot find it in the orange
blocks. Click on the module that you want to open and read the Welcome Page.
We wish you success on your academic journey!
2 PURPOSE OF AND OUTCOMES FOR THE MODULE
2.1 Purpose
The purpose of this module is to equip you with the necessary skills and knowledge required to
manage cash flows within a business, to do financial planning and to manage the working
capital of a business efficiently. To attain these outcomes, you will be expected to understand
the underlying theories and principles in working capital management and to apply these
principles to the practical work environment through practical case-study scenarios pertaining to
a business.
Please note that this module covers only three chapters in the prescribed book with some topics
adequately supplemented by notes in the study guide. Therefore, we expect you to cover this
material within reasonable time in order to complete your assignments and prepare for the
examination. You will be expected to cover the relevant study units in your study guide in
conjunction with the prescribed chapters to complete your assignments (see section 8.4.1).
2.2 Outcomes
On completion of this module, you should be able to do the following:
Demonstrate a knowledge and understanding of cash flows and financial planning
within an organisation, with emphasis on the operational plan of the business.
Interpret net working capital fundamentals.
Demonstrate a knowledge and understanding of the functioning of the cash conversion
cycle.
Demonstrate a knowledge and understanding of the management of inventory
Demonstrate a knowledge and understanding of the management of accounts
receivable.
Demonstrate a sound knowledge and understanding of short-term financing through
current liabilities.
3
, 3 LECTURERS AND CONTACT DETAILS
3.1 Lecturers
Any enquiries of an academic nature concerning this module, such as an enquiry about specific
content within your prescribed book, study guide and/or assignment may be directed to:
LECTURER CONTACT DETAILS OFFICE NUMBER
012 429 4684
E-mail: AJH van der Walt Building
Mr SJ Kasozi
Fax2email: 086 569 8844 5-86
Skype: Kashogij1
012 429 4493
AJH van der Walt Building
Mr AM Phenya E-mail:
5-83
Fax2email: 086 641 5387
Miss Z Yousuf 012 429 6777 AJH van der Walt Building
E-mail: 5-88
Please note that telephonic inquiries may only be done during office hours. Our
availability schedules for both telephonic and online interactions are as follows:
Lecturer Online Availability on myUnisa Telephonic enquiries
Mr SJ Kasozi Monday-Wednesday (14pm - 16pm) All weekdays (10am - 12pm)
Miss Z Yousuf Friday (12pm - 15pm) All weekdays (2pm - 4pm)
3.2 Department
This module is presented by academic staff members from the Department of Finance, Risk
Management and Banking (DFRB).
Please note that you may get in touch with fellow students, download study material, submit
assignments, change your address and/or examination venue, view your assignment marks,
download previous examination papers and get in touch with your lecturer at
https://my.unisa.ac.za.
You may also call 012 429 3603 for academic enquiries.
E-mail queries may be sent to .
3.3 University
Administrative queries may be directed to the appropriate department as indicated in the Study
@ Unisa brochure. Examples of administrative queries are registration matters, study material
matters, account queries and graduation issues. Registration matters must be directed to
.
4
