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lock box system in this type of system the customers are advised to mail their payments to a post office box hired through the firm for
when the customers of the company are spread over broad geographical areas then in place of a particular collection centre the company opens
collection float considers to the gap among the times payment is made through the customerdebtor and the time while funds are obtainable for use in
once the cash budget has been arranged and suitable net cash flows established the finance manager must ensure that there does not exists an
the subsequent short-term investment opportunities are obtainable to companies in india to invest their temporary cash excessa treasury bills
the requirement for working capital fluctuates according the level of inventory production debtors and creditors etc the working capital needs are
the significant objectives of short-term cash forecast are as given find out operating cash requirement anticipating short term financing
ms sunrise industries estimates its net cash requirement at rs 20 million for the subsequent year opportunity cost fund is 15 percent per annum of
one of the main deities of the financial manager is to keep a sound liquidity position for the firm hence the dues are settled as and while they
firms need cash to invest in inventory receivables and fixed assets and to create payments for operating expenses so as to increase earnings and
the firms require holding cash may be attributed to the three motives specified below the transaction motive the precautionary motive the speculative
cash is a significant current asset for the operations of business cash is the fundamental input that maintains business running smoothly and
financial decisions are depends on specific considerations the major being the cash flows liquidity and cost short-term working capital decisions or
computation of working capital required1operating cycle periodmwfd-c 10138 280726071460-60 11012 or 110
under this method approximation is made of payments and cash receipts in the ensuring period the dissimilarity of these payments and receipts
under this method approximated profit is calculated depends on transactions of the ensuing period afterward decrease or increase in working capital
in this method approximation of various assets here excluding cash and including liabilities are made getting into consideration the transactions in
on 1st january 2005 the board of directors of paushak limited needed to identify the amount of working capital needed to meet the programme they have
prepare an estimation of working capital needs from the subsequent information of a trading relates withaprojected annual sales100000bselling
it is the most practical way of estimating working capital needs in such method the finance manager gets ready a working capital forecast while
himalaya ltds profit and loss account for the year ended on 31st december 2005 is specified below you are needed to determine the working capital
after determining the amount of working capital as in above a specific amount say 5 percent or 10 percent may be added to cover contingencies this is
number of operating cycles the number of operating cycles in a period is determined by dividing the number of days in a year ie365 by the length of
period of operating cycle implies that total sum of number of days included in the various stages of operation commencing from the purchase of raw
operating cycle methodin this way total operating expenses for a period are divided via the number of operating cycles in the relevant period to