Part I.

Introduction

1. Description of the Paper

The study is all about the treasury management and the working capital

management analysis of the business, wherein the chosen business of the group is

Chowking SM Branch. The study and information is conducted with the help of the

Chowking SM Branch Manager Ms. Mae L. Gomez.

The branch manager was kind enough to entertain and help us, who introduced and

discussed to us the working capital management and process of the business of their branch.

The study and the paper introduces to us the company and talks about the Cash

Management Analysis, Accounts Receivable Management, Inventory Management,

Payables Management, and Working Capital Evaluation. And through this topics, specific

sub-topics will be explained and discussed. The topics will be define generally, followed

by the explanation and discussion of how the specific topic applies to the business, the

paper describes what, how and when the business uses those management, analysis, process

and how those topics are really related to the industry of business, specifically to theirs.

2. Treasury Management

Treasury Management is the process of administering to the financial assets and

holdings of a business. Knowing how to run all aspects of the modern treasury

management. The goal of most treasury management departments is to optimize their

company's liquidity, make sound financial investments for the future with any excess cash,

and reduce or enter into hedges against its financial risks.

 It includes management of an enterprises holdings with the ultimate goal of managing the

firm’s liquidity and mitigating its operational, financial and reputational risk. Treasury

management includes the firm’s collection, disbursements, concentration, investment and

funding activities.

The Chowking SM Branch is a company owned branch, knowing that it is designated in a

mall and it is a company owned branch and not a franchise one, the business is centralized

to the company together with other businesses under it.

And just like any other business, Chowking is a business that deals with cash on a real time

basis, and any business that deals with cash should have a sound cash management solution

in place. That is why when it comes to Chowking’s Cash Management, like Cash Transfer,

it all undergoes to their SAP or their Systems, Application and Products data system to

make transactions that are all recorded, has legal receipts or invoices that are not

questionable. They also do daily sales deposit, wherein the bank of the business is the one

who go to establishment and do daily collections. They also have a system to system

process that is connected to the bank that is much safer and provides convenience.

3. Working Capital Management

Working capital management is about the relationship between a firm's short-term

assets and its short-term liabilities. Wherein the goal of working capital management is to

ensure that a firm will be able to continue its operations and that it has enough and sufficient

ability to satisfy both maturing short-term debt and upcoming operational expenses. The

management of working capital involves managing inventories, accounts receivable and

payable, and cash.

When Chowking talk about turnover ratio it’s about how long or how many days will your

inventory today will lasts, wherein they conduct a food and paper inventory. On the

inventory process, they also have things to consider, like in ordering, they need to consider

that it has a delivery schedule, ordering cut off, it has standard unit of measure, events or

season, to know how many units you’ll need. As per Ms. Gomez, ordering inventory is also

the life of the business, if the inventory is ruined, same goes as the business itself.

Chowking’s account receivable, they do not have an invoice because they’re more on

selling. They do not have a future or accounts receivable basis because the business is a

real time and cash basis.

As per Ms. Gomez the working capital really depends on the store, the location, the staff,

certain repairs and etc. The manager have or should have an ideal ratio for the end capital

to be okay. Every branch has different expenses, different top sale of products, so to keep

the branch healthy at least having a 5% working capital would be great.