Working Capital for Growth

Facilitation plan

Begin by naming the four outcomes. For each lesson, model the fictional decision, reveal the method one step at a time, invite an individual attempt, and discuss why the distractors fail. Allow a fresh attempt after feedback. Reserve the final three scenarios for independent practice.

1. Opening and prior knowledge: 5 minutes.
2. Four guided lessons: about 5–7 minutes each, plus discussion.
3. Final check and targeted remediation: 10–15 minutes.
4. Transfer prompt: ask how the method changes with the learner’s industry facts.

Use the text-first study guide as the accessible alternate format. No recorded or live delivery is assumed.

Trace the cash cycle

Outcome: Identify the timing gap between paying suppliers and collecting from customers.

Demonstrate

The distributor pays $30,000 for stock on day 0, delivers on day 30, and expects retailer payment on day 75. Cash is tied up from day 0 through collection; other expenses still have due dates.

1. Mark the supplier payment date.
2. Mark delivery and the contractual customer due date.
3. Track actual collection and each intervening cash need.

Ask and observe

Stock is paid on day 0 and the retailer pays day 75. When does the original purchase cash return?

Expected choice: When the retailer actually pays. The initial outflow occurs on day 0; recovery follows actual retailer collection.

If missed: Explain the calculation or decision aloud; then present “Supplier is paid Monday; customer pays six weeks later. When is the cash recovered?” Correct choice: At the customer payment.

Discussion prompt: Identify which week is exposed before accepting a large order. Invite a brief verbal explanation. The learner view uses selectable checks and requires no typed submission.

Observe: Can the learner state the decision, identify the relevant facts, and follow the method without cues? A correct guess is not yet evidence of transfer. If a learner misses twice, return to the worked example with new numbers or facts before another attempt.

Size the inventory commitment

Outcome: Calculate cash committed to an incremental order.

Demonstrate

An added 2,000 bars at $12 landed cost tie up $24,000. If $6,000 is due for storage and freight before collections, near-term cash need is $30,000 before a contingency.

1. Multiply incremental units by landed unit cost.
2. Add expenses due before the first collection.
3. Compare that total with available cash and existing obligations.

Ask and observe

Two thousand units at $12 landed cost require how much inventory cash?

Expected choice: $24,000. 2,000 × $12 = $24,000 before other cash needs.

If missed: Explain the calculation or decision aloud; then present “A new order of 500 kits at $20 landed cost ties up how much?” Correct choice: $10,000.

Discussion prompt: Test a growth proposal against cash instead of only forecast sales. Invite a brief verbal explanation. The learner view uses selectable checks and requires no typed submission.

Observe: Can the learner state the decision, identify the relevant facts, and follow the method without cues? A correct guess is not yet evidence of transfer. If a learner misses twice, return to the worked example with new numbers or facts before another attempt.

Model the low-water mark

Outcome: Find the minimum projected cash across weeks.

Demonstrate

Week 1 opens at $35k, collects $5k, pays $20k: closes $20k. Week 2 opens $20k, collects $3k, pays $28k: closes negative $5k. A later $40k collection does not prevent the week 2 gap.

1. Carry each closing balance into the following week.
2. Add dated receipts and subtract dated outflows.
3. Flag the lowest balance and stress-test delayed receipts.

Ask and observe

Week 2 opens with $20k, collects $3k and pays $28k. What is closing cash?

Expected choice: Negative $5k. $20k + $3k − $28k = negative $5k.

If missed: Explain the calculation or decision aloud; then present “A week opens at $9k, collects $2k and pays $13k. Closing cash?” Correct choice: Negative $2k.

Discussion prompt: Spot the first week that needs a change or a verified funding plan. Invite a brief verbal explanation. The learner view uses selectable checks and requires no typed submission.

Observe: Can the learner state the decision, identify the relevant facts, and follow the method without cues? A correct guess is not yet evidence of transfer. If a learner misses twice, return to the worked example with new numbers or facts before another attempt.

Choose a controlled response

Outcome: Compare timing, terms, and order size before committing.

Demonstrate

With a negative $5k low week, the distributor stages half the $24k order after supplier agreement, then models the new dates. It checks whether deliveries can still be met and whether later weeks remain positive.

1. Test one realistic change at a time.
2. Recalculate all affected weeks and operational commitments.
3. Confirm terms in writing before relying on a changed date.

Ask and observe

A supplier agrees to defer $6k until week 4. What must the revised forecast do?

Expected choice: Move the $6k payment to week 4 and recalculate. A deferred bill changes the cash date, not the amount owed.

If missed: Explain the calculation or decision aloud; then present “A staged order shifts $4k purchase cash to next month. What should the model show?” Correct choice: A later $4k outflow and updated balances.

Discussion prompt: Select the response that closes the gap without hiding a liability. Invite a brief verbal explanation. The learner view uses selectable checks and requires no typed submission.

Observe: Can the learner state the decision, identify the relevant facts, and follow the method without cues? A correct guess is not yet evidence of transfer. If a learner misses twice, return to the worked example with new numbers or facts before another attempt.