THE IMPACT OF WORKING CAPITAL MANAGEMENT ON THE PROFITABILITY OF SELECTED MERCHANDISING ENTERPRISES IN LUCENA CITY

The study examined the working capital management among merchandising enterprises based from the accounts receivable, accounts payable and inventory handling. It employed descriptive research design wherein surveys were used. The locale of the study was in Lucena City, the capital of Quezon. There were a total 75 participants randomly selected; all coming from five different merchandising enterprises. Based on the findings, a number of business enterprises in the province do not take into account the importance of practicing proper working capital management; it was only seen as piece of extra work. This resulted to most of the businesses under the selected merchandising enterprises having a hard time handling the accumulated bad debts due to lack of documentation; emerging an unstable profit. With that, it was therefore concluded that working capital management has a significant impact on the profitability of merchandising enterprises.