The concept capital management in brewery industries is concerned with what working capital initiate, which are; cash, marketable security, debtor and inventories
In recent times, many industries especially in brewery industries are operating on inadequate working capital while others are operating on excessive working capital. These result to consequences of inadequate working capital. This study is embarked on generalizing on the importance of management of working capital to all person on an industry or business who are responsible directly or indirectly for any of the component of working capital.
From the work, it is observed that working capital is very significant proportion of a firm total capital. Efficient management of working capital ensure continued existence growth and stability achievement of an enterprises objective both at short and long run projection.
1.1BACKGROUND OF THE STUDY SUBJECT MATTER
Working capital is referred to a firm aggregate investment in short term asset such as cash, short term securities, account receivable and inventories by accounting definition; this refer to those assets of a business which in normal course of business are convertible into cash within an accounting year.
Working capital is also defined as current assets less current assets less current liabilities. It could even be said to be that portion of the capital of a business enterprises, which is not invested in fixed assets but is kept liquid to care for the day working need.
Management could be defined as the effective utilization of both human and material resources to achieve the forms objective and efficient administration of all items of current assets in relation to short term credit that is liability to achieve management short term objective.
Management is also the process of co-coordinating resource through people to meet and objective. Management harness both human and non-human resource into production and supply it with the necessity of life.
Consequently, working capital is important because a weak liquidity position will posses threat the slovenly of an industry, firm or business organization. When an industry solvent, it is in a condition to pay his debtors as they mature white liquidity implies the solvency of a business which has special reference to the degree of readiness in which asset can be converted into cash without any form of loss. It is the duty of the management to take prompt and timely action to correct and improve the in balance in the first liquidating position.
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