NATIONAL ECONOMICS UNIVERSITY SOCIALIST REPUBLIC OF VIETNAM

CENTER FOR ADVANCED EDUCATIONAL PROGRAMS Independence – Freedom – Happiness

SYLLABUS

1. GENERAL INFORMATION
Title: Working Capital Management and Short-term Financial
Planning
Course number: FIN 470
Finance courses
Units: 3 credits
- Theoretical hours: 20
- Practical hours: 25
Prerequisite: Business Finance, Intermediate Financial Management

2. LECTURER’S INFORMATION
Full name: Tittle:
Address: , Building , Room , Phone number:
Email:
Faculty/ Institute:

3. COURSE DESCRIPTIONS
This course provides an in-depth discussion of how firms manage working capital and cash
budgeting. This includes how firms manage cash, account receivables, inventory and account
payables. This course will also cover several special topics related to cash budgeting, such as
analyzing firms’ sales and costs or planning and controlling firms’ cash flow.
Specifically, this course will cover the following topics:
- The importance of working capital management.
- The use of financial ratio analysis in working capital management.
- The management of cash, account receivables, inventory, and account payables.
- How to analyze firms’ working capital management.
- How to implement short-term financial planning.

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4. LEARNING RESOURCES : COURSE BOOKS, REFERENCE BOOKS, AND
SOFTWARES
- Course book:
Sagner, J., 2014. Working capital management: Applications and case studies. John Wiley & Sons.
Berk, J., and DeMarzo, P., 2014. Corporate Finance, Pearson. (BD1)
Ross, H.D., Westerfield, R., and Jordan, B., 2016. Corporate Finance. McGraw Hill. (RWJ)
Brigham, F.B. and Daves, P.R., 2007. Intermediate Finance Management. Thomson/South-
Western. (BD2)
- Reference books
Sagner, J., 2010. Essentials of working capital management. John Wiley & Sons.
Ross, S.A., Westerfield, R. and Jordan, B.D., 2008. Fundamentals of corporate finance. Tata
McGraw-Hill Education.
Brigham, E.F. and Houston, J.F., 2012. Fundamentals of financial management. Cengage Learning.
- Other required materials and information:
a. NEU’s eBooks and documents at http://lic.neu.edu.vn:2048/menu: Emerald Insight, IG
Publishing eBook and ProQuest Central
b. NEU’s eBooks and documents at http://aep.neu.edu.vn:2048/menu
5. COURSE GOALS
Working capital management is one of the most fundamental activities in companies. It helps
companies to fund the day-to-day business obligation. If companies are under cash crunch, it will
be difficult for them to meet the demand for their products/services. By contrast, if companies
manage their working capital well, they can expand their business to reach new market. The goal of
this course is to provide insight on the working capital management of companies. Based on this,
students can evaluate both the drawbacks and the strength of the working capital management of
companies.
Program
Course Learning Capability
Goal Description
Goals Outcomes level
(PLO)
[1] [2] [3] [4]
Enable students to understand how a company PLO1.1.1,
G1 V
manage its working capital PLO 1.1.2
Enable students to collect data to analyze, interpret PLO1.1.3,
G2 and integrate data to identify the problems of PLO1.3.1, V
working capital management of a firm. PLO1.4.1

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 Enable students to prepare a report analyzing
G3 PLO1.5.1 IV
companies’ working capital management.
G4 Enable students to work as a team. PLO1.6.1 V
Enable students to apply knowledge in new and
familiar circumstances of working capital
G5 PLO1.7.1 V
management and propose solutions to deal with the
problems of managing working capital.
6. COURSE LEARNING OUTCOMES (CLO)
Course Capability
CLO Descriptions
goals level
[1] [2] [3] [4]
Understand the concepts, principles, and theories of
CLO 1.1 V
working capital management and cash budgeting.
CLO 1.2 Understand the concepts of cash management. V
PLO1.1.1, Understand the concepts of account receivables and
CLO 1.3 V
PLO1.1.2 account payables management.
CLO 1.4 Understand the concepts of inventory management. V
Understand the concepts of short-term financial
CLO 1.5 V
planning.
Know how to identify the problems of working
CLO 2.1 V
capital managements.
PLO1.1.3
Know how to identify the causes of the problems and
CLO 2.2 V
provide some suggestion for the problems.
Understand financial ratio analysis to analyze the
CLO 3.1 V
working capital management of a company.
Understand the models of managing cash, trade
PLO1.3.1 CLO 3.2 V
credit and inventory.
Understand the models of planning short-term
CLO 3.3 V
financing.
Know how to employ financial ratio analysis to
CLO 4.1 analyze the working capital management of a V
company.
PLO 1.4.1 Know how to employ the models of managing cash,
CLO 4.2 V
trade credit and inventory.
Know how to employ the models of planning short-
CLO 4.3 V
term financing.
PLO 1.5.1 CLO 5.1 Prepare group reports for case studies of working IV

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 capital management.
Present group reports for case studies of working
CLO 6.1 IV
PLO 1.6.1 capital management.
CLO 6.2 Develop good team work skills V
Know how to propose solutions to deal with
PLO 1.7.1 CLO 7.1 V
problems of working capital management.

7. COURSE ASSESSMENT

Assessment Assessment Percentage

Description Time CLO
methods indicators (%)

[1] [2] [3] [4] [5] [6]

Class participation is very
essential to learn this
course. Be prepared to
Attendance
participate in class
Class Weeks 1- All and
discussions by reading 10%
Participation 13 CLOs participation
learning material before the
points
lecture. The discussion will
greatly enhance students’
learning experience.
Class is grouped into 12
groups; each group has from
4 to 5 members. Groups are
Group Weeks 6- All Group
expected to do presentation. 20%
Project 8, 10-12 CLOs presentation
The presentation slide needs
to be submitted 5 days
before the presentation.
All
CLOs,
Mid-term Closed book mid-term test except
Week 9 Questions 20%
test of 90 minutes. CLOs
5.1, 6.1,
6.2
Final exam of 90 minutes. All
Students have permission to CLOs,
Universit
take the final exam when except
Final Exam y Questions 50%
they attend more than 80% CLOs
schedule
of the total classes. Make-up 5.1, 6.1,
exams will not be offered. 6.2

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8. LESSON PLAN
(Any changes on the schedule WILL BE announced in class and on TURNITIN in advance)
Class Topic CLO Learning and teaching Assessment
activities methods
[1] [2] [3] [4] [5]
Week 1 Introduction to working capital CLO 1.1, Sagner chapters 1 and 2 Questions and
management CLO 2.1, BD1 chapter 26 discussion
CLO 2.2, RWJ chapter 26
CLO 3.1, Assign students to 12
CLO 4.1 groups
Week 2 Cash management CLO 1.2, Sagner chapters 3, 4 Questions and
CLO 2.1, BD1 chapter 26 discussion
CLO 2.2, RWJ chapter 27
CLO 3.2, BD chapter 23
CLO 4.2
Week 3 Managing account receivables CLO 1.3, Sagner chapter 6 Questions and
and account payables CLO 2.1, BD1 chapter 26 discussion
CLO 2.2, RWJ chapter 28
CLO 3.2,
CLO 4.2
Week 4 Managing inventories CLO 1.4, Sagner chapter 7 Questions and
CLO 2.1, BD chapter 26 discussion
CLO 2.2, RWJ chapter 28
CLO 3.2, BD2 chapter 23
CLO 4.2
Week 5 Short-term financial planning CLO 1.5, BD1 chapter 27 Questions and
CLO 3.3, discussion
CLO 4.3
Week 6 Case study 1: BBC PVT. LTD All Questions and
and working capital challenges CLOs discussion
Case study 2: Signet Jewelers:
Assessing customer financing
risk
Week 7 Case study 3: Coromandel: All Questions and
Enhancement of short-term CLOs discussion
finance
Case study 4: LP Laboratories
LTD.: Financing working
capital

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Week 8 Case study 5: J.C. Penney All Questions and
Company CLOs discussion
Case study 6: Primo Benzina
AG
Week 9 Mid-term test All Closed-book
CLOs, exam
except
CLOs
5.1, 6.1,
6.2
Week Case study 7: Joneja Bright All Questions and
10 Steels: The cash discount CLOs discussion
decision
Case study 8: Toffee Inc.:
Demand planning for chocolate
bars
Week Case study 9: Manish All Questions and
11 Enterprises: A growth versus CLOs discussion
profitability dilemma
Case study 10: Horniman
Horticulture
Week Case study 11: Shenzhen JIT All Questions and
12 technology: Account CLOs discussion
receivable management issues
Case study 12: Home Store,
Inc.
Week Review All Questions and
13 CLOs discussion

9. COURSE REQUIREMENT & EXPECTATION

Participation (10% of your grade)
Students are required to participate in the discussion of the class by asking and answering question,
especially in the presentation time.
Class participation points will be based on general class attendance, contribution in class and
compliance with the class rules delineated below. Poor class attendance, little contribution in class
or non-compliance with class rules will result in a poor class participation grade.
Below are class rules:
1. Arrive on time and ready to begin when the class starts. If you arrive late for more than 30
minutes, you will not be counted for that class. Note that this class is intended for registered
students only.

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 2. Come prepared – read the readings assigned.
3. Turn off cell phones during classes.
4. Do not engage in individual discussions
5. No food in class time
6. Participate by contributing comments and questions during the discussions. The instructor
will call on students during the class if the participants do not volunteer.
7. Please use common courtesy and polite manners in class.
8. I have no tolerance for acts of academic dishonesty.
Presentation and Exams
There will be 1 presentation, 1 mid-term test, and 1 final exam. The weights for the presentation,
mid-term test and final exam are 20%, 20%, and 50%, respectively. Students have permission to
take the final exam when they attend more than 80% of the total classes. Make-up exams will not
be offered. The following rules apply to exams:
1. Make a notation of the exam dates.
2. Final Exam is an open-book exam, so students can use notes, books or other paper
materials. However, no technology will be allowed during the exam. You must turn off all
cell phones or any other personal technology.
3. If you do not bring an ID to the exam, you will receive a 0 for the exam.
4. No food or drinks will be allowed during an exam.
5. When time is called, stop writing.
6. Please make sure you do not engage in any behavior that may appear to be cheating.
Communication:
Studies show that students who engage in one-on-one discussions with the instructor about the
course receive better grades. I, therefore, encourage your discussion with me. You can
communicate during office hours, email or in class discussions. You also are welcome to make
separate appointments. I will be available before and after class, but only for short questions. I also
encourage feedback on the classes, lectures, teaching and reading material. We enhance the class
every semester and your thoughts are valuable in the process.
Intellectual Property:
All materials presented in class lectures including PowerPoint presentations and those materials
given are intellectual property of the instructor unless otherwise copyrighted. Any reproduction or
publication of this material without prior written permission is strictly forbidden.
10. DATED: ……………………..
CENTER FOR ADVANCED FACULTY LECTURER
EDUCATIONAL PROGRAMS