Working Capital Management

5 Credits: Finance


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Working Capital Management

Course Level
CPE Credits

5 Credits: Finance

Course Description

An essential financial issue that is routinely overlooked is working capital. This mix of short-term assets and liabilities can absorb a remarkable amount of funding without management even realizing what is going on. Working Capital Management discusses how to reduce the adverse funding effects caused by working capital, including specific recommendations on how to manage cash, receivables, inventory, and payables. The course also addresses the operational characteristics that will allow a business to function with zero working capital and characteristics of different types of asset-based lending.

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Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Recognize the conditions that can lead to zero working capital.
  • Identify the proper type of financing to be used for different working capital conditions.

Chapter 2

  • Note the sources of information used for the development of a cash forecast.
  • Recognize the benefits of cash concentration and the types of available cash sweeps.
  • State the characteristics of the different types of short-term investments.

Chapter 3

  • Note how the receivables investment will change in conjunction with differences in payment terms granted.
  • Identify the possible contents of a credit rating system and how the scoring is organized.
  • Recognize the circumstances under which software can be used to enhance collection activities.
  • Note the structure of the measurements used to monitor accounts receivable.

Chapter 4

  • State the activities that can be used to reduce the overall investment in inventory.
  • Recognize the activities required to ensure the success of a produce to order system.
  • Note the behavioral effects of using inventory measurements.

Chapter 5

  • Identify the different types of float.
  • State the different types of signals that may be sent to a supplier as part of the process of obtaining more credit.

Chapter 6

  • Note the operational requirements demanded by lenders for asset-based lending arrangements.
  • Recognize the contents of a borrowing base calculation.
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Course Specifics

Course ID
Revision Date
August 1, 2023

There are no prerequisites.

Advanced Preparation


Compliance Information

NASBA Provider Number: 103220

CMA Notice: Western CPE makes every attempt to maintain our CMA CPE library, to ensure a course meets your continuing education requirements please visit Insitute of Management Accountants (IMA)

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.

Meet The Experts

Steven M. Bragg Headshot

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 250 business books and courses. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast. Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and …

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