Tutorial Letter 101/3/2025
WORKING CAPITAL MANAGEMENT
FIN3702
Semesters 1 and 2
Department of Finance,
Risk Management and Banking
IMPORTANT INFORMATION
CONTENTS
Page
1 INTRODUCTION .................................................................................................................................... 2
2 PURPOSE AND OUTCOMES ................................................................................................................ 3
2.1 Purpose .............................................................................................................................................. 3
2.2 Outcomes ........................................................................................................................................... 3
3 LECTURER(S) AND CONTACT DETAILS ........................................................................................... 3
3.1 Lecturer(s) .......................................................................................................................................... 3
3.2 Department ......................................................................................................................................... 4
3.3 University ............................................................................................................................................ 4
4 RESOURCES......................................................................................................................................... 4
4.1 Prescribed books ................................................................................................................................ 4
4.2 Recommended books ......................................................................................................................... 5
4.3 Electronic reserves (e-reserves) ......................................................................................................... 5
,4.4 Library services and resources information ......................................................................................... 5
5 STUDENT SUPPORT SERVICES ......................................................................................................... 5
6 STUDY PLAN........................................................................................................................................ 6
7 PRACTICAL WORK AND WORK-INTEGRATED LEARNING ............................................................. 6
8 ASSESSMENT ...................................................................................................................................... 6
8.1 Assessment criteria ............................................................................................................................ 6
8.2 Assessment plan ................................................................................................................................ 7
8.3 Assignment numbers .......................................................................................................................... 7
8.3.1 General assignment numbers ........................................................................................................... 7
8.3.2 Unique assignment numbers ............................................................................................................ 7
8.4 Assignment due dates ........................................................................................................................ 7
8.5 Submission of assignments ................................................................................................................ 8
8.6 The assignments ................................................................................................................................ 8
8.7 Other assessment methods .............................................................................................................. 34
8.8 The examination .............................................................................................................................. 34
9 FREQUENTLY ASKED QUESTIONS ................................................................................................. 35
10 SOURCES CONSULTED .................................................................................................................. 35
11 IN CLOSING...................................................................................................................................... 35
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.
To get started
We wish you success on your academic journey!
2
,2 PURPOSE AND OUTCOMES
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, do financial planning and 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 apply these 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 a 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 LECTURER(S) AND CONTACT DETAILS
3.1 Lecturer(s)
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
Fax2e-mail: 086 569 8844 5-86
Skype: Kashogij1
012 429 6333 Samuel Pauw Building 5-
Mr KS Choenyana
E-mail: AV 92
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 (2.00 pm - 4.00 pm) All weekdays (2.00 pm – 4.00
pm)
Mr KS Thursday (9.00 am – 12.00 pm) All weekdays (9.00 am –
Choenyana 12.00 pm)
3
, LECTURER(S) AVAILABILITY
The lecturer(s) for this module will be available to take phone calls on academic matters and/or
to attend to students who may prefer to visit personally for academic engagement. However, the
days and times of the lecturer’s availability will be communicated in the module page on myUnisa.
These days and times are subject to change from time to time in order to accommodate the
lecturer’s work schedule and other commitments. The changes on the days and times will be
communicated by the lecturer(s) in advance through the Announcements option on myUnisa as
and when this happens. Students are advised to check the module page on myUnisa before
making phone calls or visiting the lecturer’s office for academic enquiries/engagements.
3.2 Department
Academic staff members from the Department of Finance, Risk Management and Banking
(DFRB) present this module.
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 RESOURCES
4.1 Prescribed books
You must acquire one of the following prescribed books from one of the official Unisa booksellers.
A list of booksellers is available on myUnisa.
Gitman, LJ, Smith, BM, Hall, J, Marx, J, Strydom, B, Mestry, R, Malan, M, Ngwenya, S & Makina,
D. 2014. Principles of managerial finance: global and Southern African perspectives. 2nd edition.
Cape Town: Pearson. ISBN number: 978-1-775-78887-4.
or
Gitman, LJ, Smith, BM, Hall, J, Lowies, B, Marx, J, Strydom, B & Van der Merwe, A. 2010.
Principles of managerial finance: global and Southern African perspectives. 1st edition. Cape
Town: Pearson. ISBN number: 978-1-770-25502-9.
4
WORKING CAPITAL MANAGEMENT
FIN3702
Semesters 1 and 2
Department of Finance,
Risk Management and Banking
IMPORTANT INFORMATION
CONTENTS
Page
1 INTRODUCTION .................................................................................................................................... 2
2 PURPOSE AND OUTCOMES ................................................................................................................ 3
2.1 Purpose .............................................................................................................................................. 3
2.2 Outcomes ........................................................................................................................................... 3
3 LECTURER(S) AND CONTACT DETAILS ........................................................................................... 3
3.1 Lecturer(s) .......................................................................................................................................... 3
3.2 Department ......................................................................................................................................... 4
3.3 University ............................................................................................................................................ 4
4 RESOURCES......................................................................................................................................... 4
4.1 Prescribed books ................................................................................................................................ 4
4.2 Recommended books ......................................................................................................................... 5
4.3 Electronic reserves (e-reserves) ......................................................................................................... 5
,4.4 Library services and resources information ......................................................................................... 5
5 STUDENT SUPPORT SERVICES ......................................................................................................... 5
6 STUDY PLAN........................................................................................................................................ 6
7 PRACTICAL WORK AND WORK-INTEGRATED LEARNING ............................................................. 6
8 ASSESSMENT ...................................................................................................................................... 6
8.1 Assessment criteria ............................................................................................................................ 6
8.2 Assessment plan ................................................................................................................................ 7
8.3 Assignment numbers .......................................................................................................................... 7
8.3.1 General assignment numbers ........................................................................................................... 7
8.3.2 Unique assignment numbers ............................................................................................................ 7
8.4 Assignment due dates ........................................................................................................................ 7
8.5 Submission of assignments ................................................................................................................ 8
8.6 The assignments ................................................................................................................................ 8
8.7 Other assessment methods .............................................................................................................. 34
8.8 The examination .............................................................................................................................. 34
9 FREQUENTLY ASKED QUESTIONS ................................................................................................. 35
10 SOURCES CONSULTED .................................................................................................................. 35
11 IN CLOSING...................................................................................................................................... 35
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.
To get started
We wish you success on your academic journey!
2
,2 PURPOSE AND OUTCOMES
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, do financial planning and 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 apply these 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 a 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 LECTURER(S) AND CONTACT DETAILS
3.1 Lecturer(s)
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
Fax2e-mail: 086 569 8844 5-86
Skype: Kashogij1
012 429 6333 Samuel Pauw Building 5-
Mr KS Choenyana
E-mail: AV 92
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 (2.00 pm - 4.00 pm) All weekdays (2.00 pm – 4.00
pm)
Mr KS Thursday (9.00 am – 12.00 pm) All weekdays (9.00 am –
Choenyana 12.00 pm)
3
, LECTURER(S) AVAILABILITY
The lecturer(s) for this module will be available to take phone calls on academic matters and/or
to attend to students who may prefer to visit personally for academic engagement. However, the
days and times of the lecturer’s availability will be communicated in the module page on myUnisa.
These days and times are subject to change from time to time in order to accommodate the
lecturer’s work schedule and other commitments. The changes on the days and times will be
communicated by the lecturer(s) in advance through the Announcements option on myUnisa as
and when this happens. Students are advised to check the module page on myUnisa before
making phone calls or visiting the lecturer’s office for academic enquiries/engagements.
3.2 Department
Academic staff members from the Department of Finance, Risk Management and Banking
(DFRB) present this module.
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 RESOURCES
4.1 Prescribed books
You must acquire one of the following prescribed books from one of the official Unisa booksellers.
A list of booksellers is available on myUnisa.
Gitman, LJ, Smith, BM, Hall, J, Marx, J, Strydom, B, Mestry, R, Malan, M, Ngwenya, S & Makina,
D. 2014. Principles of managerial finance: global and Southern African perspectives. 2nd edition.
Cape Town: Pearson. ISBN number: 978-1-775-78887-4.
or
Gitman, LJ, Smith, BM, Hall, J, Lowies, B, Marx, J, Strydom, B & Van der Merwe, A. 2010.
Principles of managerial finance: global and Southern African perspectives. 1st edition. Cape
Town: Pearson. ISBN number: 978-1-770-25502-9.
4
