Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. What do you meant by Overtrading?
When a company is trading large volumes of sales very quickly, it may also be generating large amounts of credit sales and consequently large volume of trade receivables. It would also be purchasing large amounts of inventories on credit to maintain production at the same rate as sales and so have large volumes of trade payables. This will extend working capital cycle which will have an adverse effect on cash flow. If company doesn't have enough working capital, it will find it difficult to continue as there would be insufficient funds to meet all costs as they fall due.
Overtrading takes place when a company has inadequate finance for working capital to support its level of trading. Company is growing rapidly and is trying to take on more business that its financial resources permit hence it is "under-capitalised". Overtrading usually occurs in businesses which have just started to trade and where they may have suddenly begun to experience rapid sales growth. In this circumstances it is quite easy to place high importance on sales growth while neglecting to manage the working capital.
Working capital cycle in a manufacturing business Average time raw materials are in stock + Time taken to produce goods + Time tak
Question 1: a) What do you meant by equilibrium National Income and to what extent is economic growth beneficial to an economy? b) Explain using both diagrams and mathemat
The demand equation for Good Y is given by P = 900/q - 0.48q + 100 q > 0 In this question use derivatives to explore the relationship between the demand for
Question Your portfolio has a beta of 1.18. The portfolio consists of 15% U.S. Treasury bills, 30% in stock A, and 55% in stock B. Stock A has a risk-level equivalent to that o
Study the following Goget financial statements and answer the questions below. Statement of Comprehensive Income for the year ended 31 Dec 2012
If an investment is expected to return of 5 percent in the future, a $53,000 investment will grow to how much in 22 years?
(Average inventory/Cost of sales) * 365 days Average inventory can be arrived by taking this year's and last year's inventory values and dividing by 2 - (Opening inventories
Ask Sita expects her future earnings to be worth Rs. 100. If she falls ill, her expected future earning will be Rs. 25. There is a belief that she may fall ill with probability of
Q. Explain the Working capital management? Working capital management Working capital management is administration of current liabilities and currentassets.Effective ma
Q. Conservative policy for financing working capital? A conservative policy for financing working capital is one where short-term finance is usedto fund: A : All of the flu
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd