2. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Class : Y11 Lesson Topic: Finance Scheme of Work: Working Capital

3. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities.

4. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Lesson Objectives ALL (KNOWLEDGE) Define and describe working capital. MOST (ANALYSIS) Examine and Analyse the working capital cycle. SOME (EVALUATION ) Evaluate the pros and cons & Justify your views on methods to improve the working capital. P&D Planning and Planning and Data Higher thinking Skills

5. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Planning Tools P&D Planning and Planning and Data

6. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. KeywordDefinition Working capital Working capital cycle Current assets Current liabilities CONNECTIVES

7. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. CONNECTIVES for Analysis CONNECTIVES for Application CONNECTIVES for Evaluation COMPARING Equally… As with… Like… In the same way… Similarly… Even so… Likewise… CAUSE & EFFECT Consequently…Due to… As a result…Therefore.. Because of…Because… CONCLUDING Firstly…After… Secondly…Before… Overall…I believe… Finally…I think … In conclusion…it depends… To conclude…short term… Meanwhile…Long term… CONTRASTING Although…Except… Moreover…If… However…Yet… Apart from…Unless… Despite…As long as… EMPHASISING Most importantly… Significantly… Notably… Especially… Above all… In particular… Indeed… QUALIFYING Despite…Yet… As long as…Unless… Apart from…If… Moreover…Except… However…Although… ADDING In addition…And… Too…Also… Additionally…As well as… Furthermore… ILLUSTRATING For instance…Such as… In the case of…So… For example… As revealed by… As illustrated by…

8. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Climb the Ladder A-A* 1.To what extent 2.Do you think 3.Evaluate whether (8-10m) 10+ connectives & key words C-B 1.Explain 2.Compare 3.Analyse (5-8m) 5+ connectives & key words E-D 1.Define 2.Describe 3.Identify (2-4m) 2 + connectives & key words ATD Apply to Apply to demonstrate

9. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Videos http://www.investopedia.com/vi deo/play/working-capital/ http://www.investopedia.com/vi deo/play/working-capital/ https://www.youtube.com/watch ?v=7JBwhhrwUCk https://www.youtube.com/watch ?v=7JBwhhrwUCk What is working capital ? How does the Duck Shop manage working capital?

10. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Having sufficient funds at the right time to be able to meet liabilities Amount of money for day to day trading. Working capital = current assets - current liabilities 2- 1 (ideal) Working Capital

11. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Working Capital Cycle

12. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Working Capital Problems PROBLEMS…

13. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. WC Problems Demand changes / Seasonal External changes – interest rate rise. Poor credit control – not getting the money in! Internal problems – Extra costs, lower revenues Financial Mismanagement

14. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Implication of poor WC Weakened Market Position Difficulties with creditors Liquidity issues. Damage corporate image

15. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Managing Working Capital To improve your working capital (cash flow) – Delay payments to suppliers. – Quickening production time. – Quicken payments from customers. – Source of Finance (LT or ST)

16. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Plenary What happens if a company has a large surplus of WC? The major cause of liquidity problems is poor management of working capital. To what extent do you agree with this statement?

17. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Lesson Objectives ALL (KNOWLEDGE) Define and describe working capital. MOST (ANALYSIS) Examine and Analyse the working capital cycle. SOME (EVALUATION ) Evaluate the pros and cons & Justify your views on methods to improve the working capital. P&D Planning and Planning and Data Higher thinking Skills

18. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Climb the Ladder A-A* 1.To what extent 2.Do you think 3.Evaluate whether (8-10m) 10+ connectives & key words C-B 1.Explain 2.Compare 3.Analyse (5-8m) 5+ connectives & key words E-D 1.Define 2.Describe 3.Identify (2-4m) 2 + connectives & key words ATD Apply to Apply to demonstrate

19. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Pass the Parcel Add as much information you can remember from today’s lesson When the horn blows – pass your sheet to the next table! R Review the Learning Review the Learning

20. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Neighbours 2 things your neighbour has learnt today 1 question your neighbour wants to ask R Review the Learning Review the Learning

21. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. Summarise your learning today into a single tweet 140 characters Keep all of the information Tweet STOP R Review the Learning Review the Learning

22. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. 1 question you need to ask 2 new things you learnt 3 pieces of information R Review the Learning Review the Learning

23. Business Section: FinanceFurther Reading C.27 Keywords – Working capital, working capital cycle, current assets, current liabilities. 5 minutes... GO STOP