Working Capital Management Practices of Selected Merchandising Businesses in the City of Dasmariñas, Province of Cavite

Abstract

The study aims to determine the respondents’ assessment on the working capital management practices of selected merchandising businesses operating in the City of Dasmariñas, Cavite. Descriptive method was used, a researcher-made questionnaire was employed as a gathering instrument, and Frequency and Percentage Distribution, Weighted Mean, and One-way Analysis of Variance were the statistical tools utilized in this study. Most of the respondents’ businesses were structured as single proprietorship, in operation for more than 10 years, had 5 or less employees, sold grocery items with a capital not exceeding P100,000. The respondents assessed the working capital management practices in terms of cash, receivables, inventories, and payables as “Effective”. When grouped according to profile, only “Years in Operation” found to have no significant difference. As to the “Form of Organization” and the “Nature of Product”, only the respondents’ assessment on cash management practices have significant differences, while there is none for receivables, inventories and payables. However, significant differences were found in the respondents’ assessment of cash and payable management practices when grouped according to “Number of Employees, and “Capitalization”, while there was no significant difference for receivable and inventory management.