CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Working capital which is the life of any business is defined as the amount by which an entity’s current asse4ts excels it currents liabilities at a point in time current assets are the assets which can be easily converted into cash within an operating cycle of accounting year. For example cash securities inventories, debtors and bills receivable while current liabilities are the chains of outsiders which are expected to mature for payment within an operating year for example creditors bill pay able, bank draft and outstanding expenses the company has to invest enough find in current assets for effective running of the business. Cash is the most importance current assets and the most liquid of all asset employed by any business. It can be inform of currency, cheque money order, credit card sales slip, and near cash item such as marketable secure ties or bank time deposits that are a wanting deposits in the bank and balances in it bank accounts. The operating cycle begins and ends with cash and every transition involves frequent reoccurrence of cash since every sales and expenses leads to receipted cash disbursement respectively.
1.2 History of Cadbury limited
Coast of Africa cocoa was major raw materials purchase for Cadbury limited in united kingdom (U.K) one of the world’s biggest manufacturers of chocolate confectionary and cocoa bases products Cadbury’s existence in Nigeria dates back to 1956 when a British sell man, Mr. George Hayward come from united kingdom to live in Nigeria with the sell aim of development the sales definite mobile publicity of Nigeria for the advertizing campaign. It was very successful and sell increase speedily leading to a decision to build a deport in Apapa in the year 1959. In December 1963, the deport extended to include a small production chart which packed balk supplier of pronto and Bournvita increases to cash a level that a complete manufacturing scheme for the product was established and production of Bournvita commenced in may 1965 in Nigeria.
In 1963 and 1964, a lot of research work was undertaken with the sole objectives of introducing new products which has been specially developed for Nigeria market as a result two new product called goody-goody and tomapep were laundry into market in 1966. Tompep has since established very wide in sage a basic ingredient in soup screw preparations Cadbury Nigeria (PLC) performance improved rapidly over the years and expansion was laugh imperative. A factory was consequently started at Agidingbi village near ikeja, Lagos in 1966 the factory was nearing completion when Nigeria and mainly,, because the eastern states at that time accounted for over 50% of the company sale’s from a sales turnover 10,121,000 in 1965, the company attained an impressive figure of over #19.5million in 1983, fi8xed asset of the company had grown to well over the #48.3 million at the end of 1983, in 1976. Cadbury Nigeria (PLC) because of a public company when in August of that year, it offered for sale to the Nigeria public 2670,000 ordinary shares. It now has well over twenty three thousands Nigeria shareholder equity participation of Nigeria in the business is now 60% in compliance with them Nigeria’s enterprises promotion decree of 1977.