Determine the net working capital

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Assignment:

Question 1

(a) Answer the following questions using the data in Table Q1(a):

Liabilities


Assets

 

Bank C/C

$280

Cash

$200

Capital

$300

Goodwill

$150

Provisions

$130

Inventories

$250

Reserves

$120

Net fixed assets

$600

Term loan

$450

Receivables

$200

Trade Creditors

$120

 

 


$1,400


$1,400

(i) Determine the net worth.

(ii) Determine the outside liabilities.

(iii) Determine the net working capital.

(iv) Determine the formula which can be used to measure whether a firm has enough resources to meet its short-term obligations.

(v) Determine the formula to assess the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately.

(b) XYZ textile industry wants to launch a new garment. Recommend a scheme which can help the industry find the group of consumers with similar needs to assist in their marketing.

(c) Select a strategy to help a company plan how to interact with organizations over a given period. Examine how this strategy helps the company to achieve the planned specific business target.

Question 2

(a) Explain system-based thinking with a real life example. Use your example to demonstrate how system-based thinking differs from traditional thinking.

(b) Formulate a tactical marketing tool which the company can use to produce the desired response from its target market. This tool should also help to shape the business delivery value to its customers.

(c) ABC Company wants to promote its goods to the market. It plans to beat the competition by reducing the price of its goods. Evaluate the advantages and disadvantages of this strategy.

Reference no: EM133218483

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