9. Write a summary of the text above.

Vocabulary

10. Read and remember the following words and word-combinations:

1)	working capital – оборотный капитал	8)	current liabilities – краткосрочные (текущие) обязательства, текущие пассивы
2)	readily convertible resources – легко конвертируемые ресурсы	9)	amounts payable – суммы к уплате
3)	inventories – материально-производственные запасы	10)	to service long term debt – выплачивать проценты по долгосрочным долговым обязательствам
4)	current assets – оборотные активы (средства), текущие активы	11)	maturing short-term debt – подлежащий к оплате краткосрочный долг
5)	working capital management –управление оборотным капиталом	12)	to enhance – повышать, увеличивать
6)	upcoming operating expenses – предстоящие текущие (операционные) расходы	13)	return on capital – прибыль на (инвестированный) капитал
7)	cost of capital – стоимость капитала	14)	such that – в пределах

11. Match the columns:

1) resources in cash	1) достаточный поток денежных средств
2) short term decisions	2) при этом
3) sufficient cash flow	3) краткосрочные решения
4) in so doing	4) применять иные критерии
5) apply different criteria	5) наличные денежные средства
6) decision making	6) система, методика, правила, принципы, нормы, стандарты
7) liquidity [lɪ'kwɪdətɪ]	7) метод, методика, технология
8) technique	8) принятие решений
9) policy ['pɔləsɪ]	9) ликвидность

Reading and Analysis

12. Read the text and be ready to answer the questions. Text b Working capital management

Working capital is the amount of capital which is readily available to an organization, that is, working capital is the difference between resources in cash or readily convertible into cash (Current Assets), and amounts payable (Current Liabilities). As a result, the decisions relating to working capital are always current or short term decisions.

The goal of working capital management is to ensure that the firm is able to operate, and that it has sufficient cash flow to service long term debt, and to satisfy both maturing short-term debt and upcoming operational expenses. In so doing, firm value is enhanced when, and if, the return on capital exceeds the cost of capital.

Working capital management decisions are therefore not taken on the same basis as long term decisions, and working capital management applies different criteria in decision making. The main considerations are: cash flow or liquidity and profitability or return on capital, of which cash flow is probably the more important.

Guided by the above criteria, management will use a combination of policies and techniques for the management of working capital. These policies aim at managing the current assets (generally cash and cash equivalents, inventories and debtors) and the short term financing, such that cash flows and returns are acceptable.

13. Translate from Russian into English:

сумма капитала, оборотные средства, текущие обязательства, предстоящие текущие расходы, наличные денежные средства, управление оборотным капиталом, суммы к уплате, принятие решений, ликвидность, прибыль на капитал, материально-производственные запасы, выплачивать проценты по долгосрочным долговым обязательствам.

14. Answer the following questions.

1. What does the term «working capital» mean?

2. Why are the decisions relating to working capital always current?

3. What is the goal of working capital management?

4. What decision making criteria does working capital management apply?

5. What do policies and techniques for the management of working capital aim at?

15. Write a summary of the text above.

16. Make a brief report on the topic.