Show the current liabilities method, Financial Management

Assignment Help:

Q. Show the Current Liabilities Method?

Forecasting of Current Assets as well as Current Liabilities Method: - As-per to this method an estimate is made of forthcoming period's current assets as well as current liabilities on the basis of factors like credit policy, past experience, stock policy and payment policy of the previous years. First of all such approximation is made for each current asset on the basis of each month and then monthly requirements are converted into yearly requirement of current assets. The approximated amount of current liabilities is deducted from this amount in order to estimate the requirement of working capital. A confident percentage for contingencies may also be added to this amount.


Related Discussions:- Show the current liabilities method

Step-up (step down) notes, These types of securities have more ...

These types of securities have more than one coupon rate and each subsequent coupon rate is higher (or lower) than the previous coupon rate. For

Collar, Collar A collar can be established by holding a share, along w...

Collar A collar can be established by holding a share, along with purchasing a protective put and writing a covered call, where both options at out-of-money.. For Example

Electronic communications networks, Electronic Communications Networks: ...

Electronic Communications Networks: In traditional stock exchanges, the buying and selling of stocks take place at a physical location only and the members have to conduct tradi

What is over capitalization, Question 1 What is over capitalization? How d...

Question 1 What is over capitalization? How do we know over capitalization has occurred? Question 2 Explain permanent and temporary working capital Question 3 A. What ar

Evaluate the annual premium for policy, A with-profit whole life assurance ...

A with-profit whole life assurance policy was issued to a life then aged 25 with: • basic (initial) sum assured of S = $100,000; • bonuses added to sum assured at the end of ea

Financial issues of divestitures, FINANCIAL ISSUES OF DIVESTITURES Many...

FINANCIAL ISSUES OF DIVESTITURES Many corporations review the business portfolio to determine the operations that fit their core strategies. The firm's desire to achieve more f

Accounting rate of return (arr), Accounting Rate of Return (ARR): This ...

Accounting Rate of Return (ARR): This technique relies on the rate of return every project will earn over its life. It takes the help of accounting profit while calculating the

What are the benefits as well as costs of holding inventory, Q. What are th...

Q. What are the benefits as well as costs of holding inventory? What is Inventory? What are the benefits as well as costs of holding inventory? Ans. Inventory: - Every enter

Risk-bearing economies of scale, a) Product portfolio refers to the diversi...

a) Product portfolio refers to the diversity of the different product lines produced by a business. In this case, Mattel's product portfolio includes: board games, toy cars, cuddly

Write Your Message!

Captcha
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