Explain the conservative and aggressive

Assignment Help Financial Accounting
Reference no: EM132539448

We have been looking at the management of our working capital and need some guidance on how we should finance the investment in our current and long-term assets. We have examined our receivables and inventory and have determined that these accounts, in total, can fluctuate from a low of $950,000 to a high of $1,300,000 during the year. We would also like to maintain about $60,000 in cash as a minimum balance. For the liabilities, our payables are usually 53% of the balance in current assets (permanent or seasonal).

Question 1: We would like you to explain the conservative, aggressive, and moderately conservative strategies using the specific information for our company and identify which strategy BFG appears to be using and its implications.

Reference no: EM132539448

Questions Cloud

Identify key points made in the case : Identify three key points made in the case. These could be problems that CISCO faced or solutions that it has considered or tools it uses to manage risk
What approach can you adopt get more feedback : As a manager, what approach can you adopt get more feedback?
How is the series of transactions accounted for : Three years later the Company B (subsidiary) sells the land to an outside party for $45,000. How is this series of transactions accounted for?
Weather and climate : Why is it windy at the beach? What forces are responsible and how do beachfront conditions differ from conditions farther inland?
Explain the conservative and aggressive : explain the conservative and moderately conservative strategies using the specific information for our company and identify which strategy BFG appears
Discuss the involvement of interest groups : Discuss the involvement of interest groups in the political circumstances that affect agenda setting. Incorporate the specific
How will you reflect on your teaching of the unit : How will the unit be evaluated? How will you decide if the students successfully completed the unit? How will you reflect on your teaching of the unit.
Homeland security for drinking water-wastewater utilities : Explain how system redundancy, backups, chemical treatment countermeasures, backflow prevention programs, system plans, and modeling will help protect
Expected earnings and the standard deviation : What would be the expected earnings and the standard deviation in earnings for the employee under the commission option?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Evaluate which of the statement is correct

Which of the statement is correct ? An investor can eliminate almost all risk if he or she holds a very large and well diversified portfolio of stocks

  Questioncash budgetthe controller of dash shoes inc

questioncash budgetthe controller of dash shoes inc. instructs you to organize a monthly cash budget for the next three

  What is the true of consolidated statements prepared

January,1 ,2011. Including in this amount was goodwill o $1500. What is the true of consolidated statements prepared as of December 31,2011

  Prepare quarterly income statements showing income

Johnson Products Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as a percent of revenues.

  What does the term consolidation process mean

what does the term consolidation process mean? What is the purpose of a worksheet during the consolidation process?

  Klingon company operates a free cafeteria for benefit of

klingon company operates a free cafeteria for benefit of its employees. budgeted and actual costs in cafeteria for last

  Interest on freed-up cash and freed-up funds

City Farm Insurance has collection centers across the country to speed up collections. The company also makes its disbursements from remote disbursement centers so the firm's checks will take longer to clear the bank. If City Farm has $4.50 million p..

  Hepner corporation has the subsequent stockholders equity

hepner corporation has the subsequent stockholders equity accountspreferred stock 7 cumulative dividend 580000common

  Assume that the revenue and variable cost relationships

In 2014, X Company's revenue was $224,550, its total variable costs were $85,050, and its fixed costs were $85,500. Assume that the revenue and variable cost relationships continue in 2015, but fixed costs increase by 19%. If the tax rate is 40%, wha..

  Primary objective is to increase shareholders wealth

Most of the discussion on climate change until now has been on the moral and political aspects of the issue. However, climate change is becoming an important issue for the corporate world too. What is your opinion? If you were CFO of a major corporat..

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Liquidity position-calculate the operating cash cycle

Hercules Wholesalers Ltd has been particularly concerned with its liquidity position in recent months. Explain why Hercules Wholesalers Ltd is concerned about its liquidity position. Calculate the operating cash cycle for Hercules Wholesalers Ltd.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd