IMPACT OF WORKING CAPITAL ON THE PROFITABILITY OF FIRMS A SURVEY OF SELECTED SMALL SCALE BUSINESSES IN IKOM METROPOLIS OF CROSS RIVER STATE

The study focused on impact of working capital on the profitability of firms. specifically, the study sought to; Find Out the impact of working capital on the daily expenditure pattern of SMEs in Ikom metropolis, Examine the impact of working capital on the revenue pattern of SMEs in Ikom metropolis, arid examine the impact of working capital on the running of the daily business of SMEs iil Ikon metropolis. A survey research design was used for the study. The population of the study was 220 while the sample size was 142. A structured questionnaire was used as an instrument for data collection. Data collected were analysed using simple percentage while hypotheses was tested using chi-square. The result of the study showed that working capital has an influence on daily expenditure pattern, revenue pattern and running of the daily business of small businesses in Ikom Local Government Area of Cross River State. It is based on this that the study recommended that the management should put in place adequate sfrategies and initiative that will ensure adequate management of working capital because it has significant relationship with the performance of the organization and that the attitude of the organization management tov.,rards the improvement ofworking capital should also be reflected in how the organization's daily operation, since both variables have direct influence on each other among others.