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the sales manager considers that there will be substantial foreign exchange risk in trading with werland payment is unpaid in werland francs in three
q example on bills of exchangearg co will be apprehensive to protect the sterling value of its expected dollar receipt the quoted forward rates
q calculate the optimum amount of funds to transferthe baumol model is derived from the eoq model and is able to be applied in situations where there
in two of the four months of the cash budget thorne co has a cash shortage with the highest cash deficit being the opening balance of 40000 this cash
the number of properties sold every month indicates that thorne co experiences seasonal trends in its business there is an sign that property sales
q illustrate about foreign exchange earningsin theory foreign exchange earnings must not be hedged as the chances of an adverse movement are
q show maximum opportunity costif marton hedges all its awaited dollar income over the next year at us155 poundl this will make guaranteed ignoring
q foreign exchange - maximum lossfrom martons point of view an adverse outcome is depreciation of the dollar against sterling as this lowers its
several overseas factors are subsidiaries of uk banks or their agents who offer facilities to companies with export credit sales usually of above
q show the benefits of jitadditionally to a higher price and quicker settlement by its major customer such a jit agreement offers several benefits to
q disadvantages of just-in-time inventory managementa jit inventory management system maynt run as smoothly in practice as theory may predict since
q advantages of just-in-time inventory managementjit inventory management methods look for eliminate waste at all stages of the manufacturing process
q just-in-time inventory management processesjust-in-time jit inventory management processes seek to eliminate any waste that arises in the
q explain about economic order quantitythe economic order quantity eoq model is basis on a cost function for holding inventory which has two terms
q compute the economic order quantitytng has a current order size of 50000 unitsaverage number of orders per year demandorder size 25538050000
q explain about centralised treasury functiontreasury departments are usually a feature of larger companies than frantic although it is perhaps
cash management is about managing excess cash also the response of management must depend on whether the surplus is large and how long it is
q degree of uncertainty in predicting cash balancesprobability approaches identify a degree of uncertainty in predicting cash balances and allow for
q illustrate miller-orr model recognisesthe miller-orr model recognises which cash balance requirements are likely to fluctuate and that active
q explain inventory approach to cash managementthis method analysis cash in the same way as engine inventory such that eoq models may be employed in
q illustrate methods to manage cash resourcesthere are several methods which may be of use in managing resources the particular tool selected will
q methods of easing cash shortagesthere are several techniques which can potentially offset the effects of cash shortages in the long-term
q how cash flow problems ariseit is significant first to distinguish between profitability and cash availability the key scheme relates to insolvency
q show the signs of overtradingthere are a number of usually recognised signs that a company may be overtrading these are considered mutually with
q major proportion of the maximum financing requirementwhether the credit terms themselves is able to be changed may depend upon the credit terms of