It is the intention of the researcher to study and investigate in the paint industry the relevance effect and the importance of effective working capital management. A case study of marshal paints and chemical company it Enugu. This research proposal is concerned with the identification of liquidity and cash management of marshal paits and leading paint company East of Niger. Finding solution to the problems so identified and recommending them to the management for approval and implementation.

In the pilot study carry out by the researcher several discoveries we make is to why the working capital management of the company is undertaken by a separate department.

Amongst these are efficient inventory management which in maintenance of smooth production process, survival, profitability and growth.

The scope cover’s include the paint factory in Enugu and Anambra state and it is the researchers believe that the study will be f much benefit to the company, the wholesalers, retailers and consumers.

Finally, two approaches is use in collecting data for the research. These are primary and secondary data.

TABLE OF CONTENT

Cover page

Title page

Approval page

Dedication

Acknowledgment

Abstract

Table of content

CHAPTER ONE

1.1 Introduction

1.2 Statement of Problem

1.3 Objective of the study

1.4 Research hypothesis

1.5 Assumption of the study

1.6 Scope of the study

1.7 Significance of the study

1.8 Limitations of the study

1.9 Historical background of marshal pints and chemical company

1.10 Organization of the study

1.11 Definition of operational terms

CHAPTER TWO

2.0 Review of related literature

2.1 Meaning of working capital

2.2 Composition of working capital

2.3 Factors of affection the composition of working capital

2.4 Current Assets

2.5 Current liabilities

2.6 Management of working capital

2.7 Types of working capital

2.8 Characteristics of working capital

2.9 Sources of working capital

2.10 Uses of working capital

CHAPTER THREE

3.0 Research methodology and procedures

3.1 Selection of data

3.2 Collection of data

3.3 Nature of data analysis

CHAPTER FOUR

4.1 Data presentation and analysis

4.2 Presentation of data

4.3 Analysis

CHAPTER FIVE

5.1 Summary of findings

5.2 Recommendation

5.3 Conclusion

Bibliography

CHAPTER ONE

INTRODUCTION

One of the major objectives of most business organization is profitability. However, in financial management, it is generally believed that liquidity is more important than profitability. One of the reasons for this is that most organizations make profits, but do not possess enough or adequate liquid asset to offset current obligations. Inability to make payment as at when due may definitely have serious consequences on the organization. This situation may give rise to a loss of goodwill and furthermore any result to technical insolvency, which may lead the organization to unintended liquidation.

A second reason is hat uncertain inherent in these present days economic/business environment threatens the survival of every business, thus making sound liquidity and cash management a necessity points in corporate planning. This claim is substantiated in the recent times by the fact that the importance of management of liquid asset has been gradually and systematically gaining prominence and growth of liquidity management makes it very apparent that no firm can survive without an effective and efficient management of its liquid resources which is the working capital. The working