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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
the most ticklish difficulty that is faced through the finance manager is the resolve of the amount of working capital requirement at a specific
loan syndication there are two ways of syndication as direct lending and through participation- direct lending regarding direct lending all the
consortium lending as the financial needs of a single unit are more than a single bank can cater to then more than one bank comes together to finance
the emerging financial scenario has made a fierce competition among the companies to raise funds by innovative financial products by the capital and
bank guarantee is one of the facilities which the commercial banks extend in support of their clients in favour of third parties who will be the
the cp introduced in the indian financial market for the recommendations of the vaghul committee has turn into a well-liked debt instrument of the
in the current corporate world this is a common practice of companies along with surplus cash to lend to another company for a short period generally
this is a most familiar form of medium term financing in obtaining plant and vehicles machinery etc in hire purchase transactions the purchaser of