THE EFFECT OF WORKING CAPITAL MANAGEMENT ON

THE MANUFACTURING FIRMS’ PROFITABILITY (IN THE

CASE STUDY OROMIA SPECIAL ZONE, GELAN CITY)

A THESIS PROPOSAL SUBMITTED TO THE SCHOOL OF GRADUATE

STUDIES OF ARSI UNIVERSITY FOR PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR MSc. IN ACCOUNTING AND FINANCE

BY: ASHENAFI GEMECHU

ADVISOR: ABDI D. (Ph.D)

ARSI UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF ACCOUNTING AND FINANCE
POSTGRADUATE STUDIES

March 2021

Asella, Ethiopia
 1. INTRODUCTION

1.1. BACKGROUND OF THE STUDY

Working capital refers to the firm’s investment in short-term assets like

account receivable, account payable, inventory and others including cash or
cash equivalent and marketable security (Ross, Westerfield, Jaffe and Jordan,
2008). Working capital, the money needed for day-to-day operations of a firm,
is described as an investment of the firm’s capital in current assets and the
use of current liabilities to fund part of the investment. Working capital
constitutes various current assets and current liabilities . The current assets
are cash and cash equivalents, marketable securities, accounts receivable and
inventories. The current liabilities are accounts payable, expenses payable,
including accrued wages and taxes and notes payable (Vural, Sokmen and
Cetenak 2016).
Hence, working capital refers to that part of the firm’s capital, which is
required for financing short-term or current assets such as cash, marketable
securities, receivables and inventories. Thus, funds invested in current assets
keep revolving fast and are constantly converted into cash and this cash flow
out again in exchange of other current assets. Working capital is also known as
revolving or circulating capital.
Management of working capital refers to management of current assets and
current liabilities (Raheman and Nasr, as cited in Mulualem, 2011).
Management of working capital is important to the financial health of
businesses of all sizes. The issue of working capital management (WCM) is
related with maintaining adequate levels of working capital components,
namely current assets and current liabilities.
Managing the firm’s working capital is a day-to-day activity that ensures the
firm has sufficient resources to continue its operations and avoid costly
interruptions. This involves a number of activities related to the firm’s receipt
and disbursement of cash. The ability of financial managers to effectively and
efficiently manage their receivables, inventories, and payables has a significant
impact on the success of the business and on profitability as well (Agha, 2014).
Most firms have a large amount of cash invested in working capital, as well as
substantial amounts of short-term payables as a source of financing. It can be
expected that the way in which working capital is managed will have a
significant effect on the profitability of firms. Accordingly, for many firms
working capital management (WCM) is a very important component of their
financial management. Firms may have an optimal level of working capital
that maximizes their value. On the one hand, large inventory and a generous
trade credit policy may lead to higher sales. Larger inventory reduces the risk
of a stock-out. Trade credit may stimulate sales because it allows customers to
assess product quality before paying (Long, Malitz & Ravid, as cited in Musa
Idris and Adamu Yahaya 2016).

When managing any kind of business, financial manager should always

ensure the firm is able to meet their financial obligations as they fall due, as
this instills a sense of confidence to the investors and thus wins their loyalty.
On the contrary, a poor liquidity status could lead to inability of firms meeting
their financial obligations. Proper working capital management is crucial
instrument, and it is only when a firm is profitable that it will see the light of
market growth, market share and progress through product and industry life
cycles (Esther, 2014).

Finance theories are discussed under three main out fits as capital budgeting,
capital structure and working capital management. As a result, the first two
are mostly related to financing and managing long term investments.
Management of working capital refers to management of current assets and
current liabilities (Ross et al., 2010).
According to Padachi K. (2006) the standard measure of working capital
management is the cash conversion cycle that is the time interval between the
expenditure for the purchase of raw materials and the collection of sales of
finished goods. Therefore, the stretched this time delay, the bigger the
investment in working capital will be. The inadequate of working capital leads
the firm to liquidation. Inversely, unnecessary investment in working capital
results in wasting cash and ultimately leads to lower profitability or even loss
(Gill A, Biger N and Mathur N 2010). Management strategy aimed at
maintaining a balance between liquidity and profitability has far-reaching
consequences on the growth and survival of the firm. Thus, the manager of a
business entity is in a dilemma of achieving desired tradeoff between liquidity
and profitability in order to maximize the value of a firm.
Deloof (2003) found that the longer the time lags, the larger the investment in
working capital, and also a long cash conversion cycle might increase
profitability because it leads to higher sales.
To sum up; one of the most important factors for a firm to consider is the
management of working capital. The components inside WCM consist of
current assets and current liabilities. The difference in current asset to
current liabilities also reflects a firm’s liquidity (Mathuva, 2010). It is
important to have a good assessment of a company's liquidity because a
decline in liquidity can lead to a greater risk of bankruptcy. WCM is essential
for any firm to survive because of its effects on a firm’s profitability and
consequently its value. The effective working capital management is very
important because it affects the performance and liquidity of the firms (Taleb,
G.A., Zoued, A.N., Shubiri, and F.N., 2010). The main objective of working
capital management is to reach optimal balance between working capital
management components (Gill, 2011). The efficient management of working
capital is a fundamental part of the overall corporate strategy to create
shareholders value (Nazir and Afza, 2008). Therefore firms try to keep an
optimal level of working capital that maximizes their value (Deloof, 2003).
The field of working capital management is given attention by researchers
because of its continued relevance and centrality to the success of a going
concern. To corroborate this assertion, Enyi (2011) asserts that a business is
as strong as its unencumbered capital base, as liquid as its working capital
volume, and as dynamic and viable as its managerial decisions, working capital
is the centre of existence of any business. In effect, without working capital,
business cannot operate successfully (Nor Edi and Noriza, 2010).
Hence, however investment and working capital management is common in
any nations of the world; in developing countries like Ethiopia with less
experience in manufacturing industry, it attracted attention of the researcher
in this untouched area, Gelan industrial zone as per the researcher knowledge.
Moreover, working capital management is not only increasing profitability in
today’s cash - Strapped and uncertain economy, but it is the question of
meeting firm’s day to day operation. Therefore, the issues uttered above
vindicate the need to thoroughly investigate the problem; and hence, the need
to study the effect of working capital Management on firm’s profitability in
Gelan City manufacturing companies.
Having this, the study will be aimed at examining the overall effect of Working
Capital Management on the Profitability of manufacturing companies in Gelan
City.

1.2. STATEMENTS OF THE PROBLEM

Working capital management is an important and crucial issue in any

organization. The importance of working capital management in a business
enterprise cannot be underplayed. Management of working capital is central to
the growth and survival of any business. Working capital is as inevitable in
business as blood is in human body (Umara, Sabeen, and Qaisar, 2009).The
need for maintaining adequate working capital is imperative. Just as
circulation of blood is very necessary in the human body to maintain life, the
flow of funds is very necessary to maintain business. If it becomes weak, the
business can hardly prosper or survive (AL Shubiri, 2011). Working capital is
what makes business to run effectively and efficiently. Business organizations
need to give proper attention to the management of their working capital.
Working capital management is important for creating wealth for shareholders
(Amarjit, Nahum and Mathur, as cited in Ademola, 2010). Therefore, proper
management of working capital components is mandatory for the firm to run
its operations smoothly. As Javid and Zita, (2014) states Working capital
management is ability of financial managers to effectively and efficiently
manage their cash (cash equivalent assets like marketable securities),
receivables, inventories, and payables has a significant impact on the success
of the business and on profitability. Brigham and Houston, (2003) mentioned
that about 60 percent of a typical financial manager’s time is devoted to
working capital management. Most of the time, liquidity goals of a firm is to
have adequate cash to pay for its bills; to make large unexpected purchases
and finally, firm has an adequate cash reserve to meet emergencies in all time.
Whereas, profitability goal on the other hand requires that, funds of a firm are
used so as to yield higher returns.
Moreover, through exploring the works of the other researchers about to
identify the impact and level of effect which will be going to discuss is the
literature, concluded different association value between different Profitability
and working capital measures plus other exogenous factors. After their findings
they raised different effect. Some concluded positive, other negative also
significant and insignificant effect among working capital measures and
profitability in the matter of different economy.
There were inconsistencies in finding of other researchers even in the context
of Ethiopia as the researcher searched using different search tools. The
researcher suggests the reason for inconsistency like the type of the
companies, the way companies prepare their financial statements plus the
quality of the researcher’s data collection and analysis way. Hence, the
researcher needs to see these and other conceived sources of inconsistency by
carefully observing the above reasons.
In addition, most of the researchers mainly concentrated in Addis Ababa but
to the best knowledge of the researcher while searching on internet and
looking journals no one has been conducted a research specifically in Oromia
special zone, Gelan city. Because of many companies confined there, recently
the area identified as industrial zone even as a country. Hence, it is very
essential to conduct this study around. Having this, therefore the researcher
needs to bridge geographical gap.
In line to the above stated gaps the researcher also need to incorporate recent
year observation (data) which is not considered by the other researchers in the
area at time.
Generally, the researcher needs to abridge the knowledge gap in the area of
working capital management.

Considering of the above points, aim of the study will be to examine the effect
of working capital management on the profitability of manufacturing
companies found in Gelan city.

1.3. OBJECTIVES OF THE STUDY

1.3.1. General Objective
The general objective of the study is to examine the effect of working capital
management on the profitability of manufacturing companies found in Gelan
city.
1.3.2. Specific Objectives
This study on the effect of working capital management on firms’ profitability
on companies in Gelan city assumes the following specific objectives:
 To evaluate the effect of cash conversion cycle management on
firms Profitability.
 To analysis the effect of inventory management on firms
Profitability.
 To analyse the effect of receivable management on firms
Profitability.
 To examine the effect of payable management on firms
Profitability.
1.4. RESEARCH HYPOTHESIS

A few numbers of research hypothesis can be made in view of the effect of

working capital management on firms’ profitability.

H1: There is significant effect of Cash Conversion Cycle on

Profitability of the firm.
H2: There is significant negative effect of Inventory days on
Profitability of the firm.
H3: There is significant and negative effect of receivable days on Profitability
of the firm.
H4: There is significant and positive effect of payable days on
Profitability of the firm.
1.5. SCOPE OF THE STUDY

The study will be delimited in its title to examine the effect of working capital
management on the profitability of manufacturing companies found in Oromia
Special Zone Gelan city. The total sample size of the study will be 38
manufacturing companies. Of which, a total of 78 factories, the researcher will
select only 38 companies as a sample through stratified random sampling
technique in order to avoid bias. Finally, the study will incorporate five years
data starting from 2014-2018.

1.6. SIGNIFICANCE OF THE STUDY

The findings of the study will have great importance for the following. The
findings and recommendations of the study help the manufacturing
companies to understand the effect of working capital management on
profitability so as to enhance their growth and success.
Also, the study will contribute to the body of knowledge by identifying how
working capital management affects firms’ profitability and how managers can
use working capital strategies to increase the firms’ market value. Researchers
and academicians will find the study useful for further discussion and
research. Moreover, the study benefits the researcher to obtain new knowledge
about the problem under study and gives clear picture about the discipline of
research. Finally, successful completions of the study help the researcher to
partially fulfill the requirements for the award of a Masters’ degree in Masters
of Science (MSc.) in Accounting and Finance offered by Arsi University.

1.7. LIMITATIONS OF THE STUDY

The quality of this research is highly dependent on the genuine information

collected from companies. So that, lack of willingness and reliability of the data
will be the main problems face in the study process and affect its output. Also,
as self-sponsored student relying on savings to progress his studies and
therefore there has been a limitation on financial resources. Moreover, another
factor that limited the study will be shortage of time.
 2. RESEARCH METHODOLOGY

2.1. INTRODUCTION
This Chapter contains the methodology that will be used to conduct the
research. It describes the research design, the population, sample, model
specification, data collection and data analysis method.

2.2. RESEARCH DESIGN

According to Kothari (2004) the formidable problem that follows the task of
defining the research problem is the preparation of the design of the research
project, popularly known as the “research design”. A research design is the
arrangement of conditions for collection and analysis of data in a manner that
aims to combine relevance to the research purpose with economy in
procedure.”

The researcher will use explanatory research with quantitative research

design. An explanatory research tries to explain the reasons of the
phenomenon. According to Grover (2003) explanatory research is devoted to
finding causal relationships among dependent and independent variables. The
justification for this method is that it will be expected to assist the researcher
in explaining the effect of working capital management on the profitability of
manufacturing firms in Gelan City. Since the research is cause and effect type
it will be more appropriate to use explanatory.

2.3. TARGET POPULATION

According to Mugenda & Mugenda (2013) target population entails an entire
group of persons or things which have similar features which are preferred by
the investigator. Target population consist of a group of entities or elements
which might be huge than or distinct from sampled group from which the
researcher will draw conclusions about the interested population. The target
population of this study will be comprised of manufacturing companies in
Gelan City. The data from Gelan City Revenue Authority 2018 shows that,
there are 120 manufacturing companies operating within the city. For the
purpose of this study, the researcher involved 78 populations; because, the
remaining are established recently that less than five years.
2.4. SAMPLE AND SAMPLING PROCEDURES
Kothari (2004) describes a sample as a collection of units chosen from the
universe to represent it. Further, Zikmund (2010) also refer to a sampling
frame as a source list containing all names of the universe. Specifying the
sample frame is crucial as it itemizes all items in the population from which a
sample is obtained for analysis so as to test the research hypotheses. The
study will adopt a stratified sampling procedure to select 50% of the target
population as the sample size.

The sampling procedure of the study will be stratified sampling technique. In

stratified sampling, the population will be categorized into various strata.
Random sampling will then be applied in the selection of the firms from each
of the strata. In random sampling, all the firms have equal chances of being
selected.

Stratified sampling method has the following advantage which leads the
researcher to use it. First, it improves the accuracy of the sample, i.e. it
ensures that any differences between the strata are controlled by making sure
that each stratum is proportionately represented. Second, Stratified sampling
is one tool to reduce selection bias. However, if from stratum’s one group is
either overrepresented or underrepresented in a sample, selection bias has
occurred and the sample will not accurately reflect the larger population.

Accordingly, six (6) types of manufacturing companies will be chosen for this
study based on their nature. The study will make the sample representative of
the population manufacturing companies in Gelan City. Proportionate
stratified sampling design will be used.
Table1. Table showing sample size
STRATA Total population Sample sizes
Metal 26 13
Garment 10 5
Food 10 5
Paper 5 2
Construction 6 3
Other 21 10
Total 78 38

The sampling fraction will be based on the number of population for each of
the six strata that form the sample size of 38. This will ensure that all the
manufacturing sectors will be represented in the sample size in the
proportions in which they will occur in the total population. Since the total
population is 78 and the sample size will have 38 elements, the uniform
sampling fraction for all activity type will be 38/78=49%

2.5. SOURCE OF DATA AND COLLECTION METHOD

The data will be collected from Gelan City revenue authority office to have
reliable source. The data will be obtained from the audited income statements
and statements of financial position for a period of 5 years from 2014 to 2018,
from the revenue authority. The researcher will collect data for each variable
for each year under review. For this study purpose, panel data will be
considered the most appropriate to address the research objectives. A panel
data is the combination of cross-sectional and time series data (Gujarati,
2004). Panel data has the ability to identify and measure the effects that are
simply not noticeable in pure cross-section or pure time-series data (Baltagi,
2005).

The reason for using five year data will be in order to include some factories
emerged recently in Gelan City at which their life span is not less than five (5)
years for investigation components of working capital and control variables.
2.6. RATIONALE BEHIND THE SELECTION OF LOCATION
Firstly, the choice of Gelan City was made because, Gelan City recently being
identified as an Industrial Zone even as a country due to many companies
confined there and found nearest of Addis Ababa, the Commercial Capital
City of Ethiopia with a good trading. Second best, while searching on internet
and simple survey made, the researcher believed that, the problem is almost
untouched in the area.
2.7. DATA ANALYSIS AND PRESENTATION
In order to analyze the effect of working capital management on the firms’
profitability, quantitative research approach to analysis the finding,
Descriptive statistics to describe and summarize the behavior of the variables
and inferential tests (Correlation and regression) has been be applied to test
the effect of variable(s) on profitability of firms. The analysis will cover the
period from 2014 to 2018. The researcher will use SPSS and E- view9 for
different purpose.
Simple Descriptive Statistics
Descriptive statistics will be used as the first step in the analysis and it will be
used to describe relevant aspects of observable facts about the variables and
provide detailed information about each relevant variable. At this stage, mean,
standard deviation, maximum and minimum values of the required variables
will be computed.
Inferential Test

Correlation is to measure the strength or degree of linear association between

two variables, as well as to measure this strength of linear association between
variables (Gujarati 2005). In this study, the Pearson’s Correlation Coefficient
will be calculated to see the relationship between all variables. Hence, the
study uses this analysis method to define the association between firm
profitability and working capital components. As for the direction of the
relationship, the positive correlation indicates that when one variable increase
another also increases while the negative correlation show inverse relationship
(Pallant, as cited in Wobshet 2014). There is many previous studies have
chosen to employ Pearson’s Correlation analysis to see first the correlation
between variables before calculating regression analysis Padachi, 2006; Huynh
and Su, 2010; Delof, 2003; Ephrem Woldu 2011; Mulualem Mekonnen 2011.
But, one of the shortcomings of Correlation analysis is that it cannot identify
cause and effect relationship (N.T. Huynh 2011). It is why the Regression
analysis employed.

Regression tries to estimate or predict the average value of one variable on the
basis of the fixed values of other variables. A pooled regression will be
conducted, since the data has both time series and cross-sectional dimensions.
Time series data are data that have been collected over a period of time on one
or more variables. Cross-sectional data are data on one or more variables
collected at the same point in time (Brooks, 2008).

2.8. MODEL SPECIFICATION AND DESCRIPTION OF VARIABLE

Multiple regression analysis
Multiple regression models, that is, models in which the dependent variable,
or Predict and, Y depends on two or more explanatory variables, or Predictor
(Gujarati 2004).
Hair Bush and Ortinau, (2000), the formula for regression analysis is given
below:

Yi =a + b1X1 + b2X2 + b3X3 + b4X4 + b5X5 + b6X6 + εi

Yi= dependent variable.

a = intercept (value of ‘y’ when ‘x’ is zero)

b = slope coefficient for independent variable
X = the specific Independent variables

εi = error

The study uses regression model. The model is as follows;

ROAit = α+β1CCCit+ β2DIOit +β3DSOit + β4DPOit+ β5CRit + β6LOTAit + εi

Where:

ROAit = Profitability of firm ith at‘t’ time;

i = 1, 2, 3&, 38 firms
t = Time from 1, 2…, 5 years
α = Estimated value of Y when all the other variables are Zero

β1, β2, β3 β4, β5, β6 & β7 = are the regression co-efficient

CCCi = Cash conversion cycle of firm i

DOIi = inventory day of firm i

DOSi = Receivable day of firm i

DOPi = Payable day of firm i

LOTAi = the size of firm i

CRi = Current Ratio of firm i

εi = error term
The Coefficient of determination
Coefficient of determination (R2) test will use to analyze how well the line of
goodness of fit represents the data; i.e., R2 (multiple regression) is a summary
measure that tells how well the sample regression line fits the data.

The t–test

The t–test takes two sets of data and then examines whether the average of the
two group are statistically different from each other. For example this can be
used to analyze, the increase in profitability is mainly caused by working
capital components or control variables of the firm. The test carried out at 5%
or10% significance level. The result significant if the ‘P’ value is 5% or less.
2.9. DEFINITION OF VARIABLES

The aim of this thesis is to empirically investigate the effect of working capital
management on the profitability of selected manufacturing companies during
the period 2014 to 2018. Since, the researcher wants to find relationships
between working capital components and its effect on the profitability of
selected manufacturing firms, the best choice will be to do regression analysis.
Therefore, the researcher will divide the variables into two groups, which are
dependent and independent & control variable.

According to researcher, research hypothesis and objective, researcher decided

that measurements of firms profitability (ROA) is dependent variable; whereas
Cash conversion cycle, inventory day, Receivable day, Payable day are
independent or explanatory as well as Sales growth, Firm size and Current
Ratio are control variables.
Dependent variable

Return on asset

Dependent variables are variables that are used to measure the profitability of
firms based on the independent variables. In order to examine the effect of
working capital components on the profitability of manufacturing companies
in Gelan, profitability will be measured by return on assets (ROA).

ROA is a widely used financial tool to determine the level and intensity of
returns that a firm has generated by employing its total assets.
 ROA = Net income/total assets
Independent Variables
This study will make use of the following: the explanatory and control
variables.
Cash conversion cycle (CCC)
Cash conversion cycle is a time span between the payments for raw material
and the receipt from the sale of goods. The cash operating cycle is the amount
of time between the companies’ purchasing raw materials, converting to a
finished goods and the receiving of cash from the sale of the goods. (Arnold,
2008 pp.454) mentioned that companies take a cycle in which companies
purchase inventory, sell goods on credit, and then collect the amounts
due. It can be calculated as follows;
 Cash Conversion Cycle
= (Number of Days Inventory)
+ (Number of Days Accounts Receivable)
− (Number of Days Accounts Payable)
Inventory days
The inventories in the form of raw materials, work in progress, and finished
goods. This is one of the major parts of assets for manufacturing companies.
However higher level of inventory days is not always good sign for the company
as it can increase the storage cost and obsolescence stock. It can be calculated
as follows;
 Inventory days = [inventories*365]/cost of sales.
The less number of days sales in inventory indicates that inventory does not
remain in ware houses or on shelves but rather turns over rapidly from the
time of acquisition to sale (Ross et al, 2003).
Receivable days

The effectiveness and efficiency of the debt collection can be measured

through receivable days. Higher receivable days means the debt collection
policy is not effective and there are possibilities for writing off more debt. (Ross
et al, 2003) state that days sales in receivables measure the effectiveness of
the firm’s credit policy Receivable days can be calculated as follows;

 Receivable days = [accounts receivable*365]/sales.

Payable days
The amounts payable to the suppliers for the goods and services purchased is
represented as trade payable. When the suppliers offer credit periods to the
firm it gives the flexibility to manage the finance with other expenses. Further
the credit period also allows the firm to measure the quality of the supplied
product and services. The payable days can be calculated as follows;
 Payable days = [accounts payables*365]/cost of goods sold.

Current Ratio
Liquidity affects profitability of firms so to keep its effect neutral the researcher
have used current ratio as control variable. It is a measure of general liquidity
and it is the most widely used to make the analysis for short term financial
position or liquidity of a firm (Fabozzi and Peterson, as cited in Wobshet, 2014).
It is calculated as follows;
 Current Ratio
= Current Asset
Current Liabilities

Size of the firm

Size of the firm can influence the firm’s performance in several ways. Firstly if
a firm is large player in the market it gives the bargaining power to strike good
deals with supplier. Further the lenders will be happier to provide the loans
(Samiloglu and Demirgunes, 2008). Size of the firms can be calculated as
logarithm of Total Asset and the formula is given below;
 Size of the firm = log of Asset
 2.10. Description of Variables, Scale of Measurement

No Variables Symbo Formula Type of Predicted Evidenced

l variable sign/HP
studies

1 Profitability ROA Net Income/ Depende

of firm Total Assets nt

1 Cash CCC trade receivable Indepen + (lower Cash Deloof (2003)

conversion days + dent conversion cycle Falope and Ajilore
cycle of the inventory days – period, high (2009)
firm trade payable Profitability)
Garcia & Martinez
days
(2007) & others
2 Inventory DIO [inventories*365 Indepen - (Increase Tewodros Abera
day of the ] /cost of sales dent Inventory days, (2010)
firm Profitability low) Falope and Ajilore
(2009) & others
3 Receivable DSO [accounts Indepen - (Receivable Tewodros Abera
day of the receivable*365] dent days increase, (2010)
firm /sales Profitability low) Falope and Ajilore
(2009)
Tewodros Abera
(2010) & others

4 Payable day DPO accounts Indepen + (increase Garcia & Martinez

of the firm payable*365]/ dent Payable days, (2007)
purchases high Falope and Ajilore
Profitability)
(2009) & others
5 Current CR Current Control +/- (as one Mehmet (2009)
Ratio Asset/Current increases the Mulualem
Liability other decreases) Mekonnen (2011)

6 Size of the LOGA logarithm of Control + (the increase Ephrem Woldu

firm Asset in size of the (2011)
firm, would be Mulualem
increase in
Mekonnen (2011)
Profitability)
 3 TIME AND BUDGET SCHEDULE
3.1 TIME SCHEDULE

N Activities Time frame (Period)

o
1 Prepare Theses Proposal February 15 – March 15
2 Complete Literature Review March 16 – April 16
3 Complete Field Work (Data Collection) April 17 – April 25
4 Complete Data Processing and Submission of April 26 - May 26
First Draft
5 Complete the Final Report May 27 – May 30

3.2 BUDGET SCHEDULE

No Description of the Items Unit Quantity Unit Total Remark

Price Price
1 White Paper Pack 3 180.00 540.00
2 Pen Pack 1 120.00 120.00
3 Pencil Pack 1 60.00 60.00
4 Typing and duplicating proposal No --- --- 10,570.00
and report
5 Mobile card for communication No 2 100.00 200.00
6 Binding the proposal and final No 10 30.00 300.00
report
7 Transportation --- --- 600.00
Total Cost 12,390.00

References