Invest in capital market or money market

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Currently, ABS Company has an issues with the working capital. ABS is running the food manufacturing. The firm only has RM20,000 cash in the bank and the critical problem faced with its account receivable. Its day sales outstanding is 55 days compared to industry 25 days.

Its turnover ratio is only 5 times compared to the industry 12%. Currently, the firm do not invest in capital market or money market.

Required:

As a finance manager in the company, you are required to determine the problem may arise in the company and to overcome the issues. Assess your above findings and present to your CFO.

Reference no: EM133119034

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