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    (WCM) Assignment 2 Compressed - Compressed

    Uploaded by

    prateekshasanchi
    Working capital management assignment

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    (WCM) Assignment 2 Compressed - Compressed

    Uploaded by

    prateekshasanchi
    3 views5 pages
    Working capital management assignment

    Original Title

    (WCM)Assignment-2-compressed_compressed

    Copyright

    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Working capital management assignment

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3 views5 pages

    (WCM) Assignment 2 Compressed - Compressed

    Uploaded by

    prateekshasanchi
    Working capital management assignment

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    AssGINENT-2

    actoxipg ? slain he fyoeu


    ctoing nahal tiandotion
    acc@unts ) oeceivables inan£ng whee
    Vbiness sells
    (accouns syeceivables) to a thind bart kngun, ad
    byocess allows
    Foctay ,at ta dioount .fhis fyoesa
    busineses to imbyoue Vtheiy l cash low, mange
    wayking Caital etiiently and Lduce
    time sbent n COlection

    Eterents -
    Reivabtes Sale - buuness setl1 8ctstandting
    Soveices to a actot,sualy at a
    total valtu, The thon takes
    the suboniility couecting
    thc custome

    i mmeati Coh lu-Jo exchange ax the tnvoices, the business


    ofehives immecikte Cah. uich can be uud
    otoyatiornol
    othey
    catgnaes, nuvestngrt
    finandal opotunties,
    tü ees Discounts -The acta chauge a Jec
    Jtfeiy seuices hiD Can be.
    the invoice ampurtt o a lat
    thu di count Veuses Labd
    Sych as the ccdtworines bald
    the. ot
    Kactos
    the vouuu o anwoias an te) ime. he.
    un Ces Gustandiny.
    huinessctasing
    Receuse Vs Nen-Rerowse
    actind fockasing-J
    Jjemathu
    cutomer ailu t
    yecousse

    any unid inwoiccs.4 a


    Tthe
    the
    acto lan
    buiness.
    domprnd upaent
    so Nan - Recowy actoving , t
    the
    assumes the diak
    Custeen defaults, De
    abk the loss, bect this
    Comes th highoe Hees

    oocessi
    iAbpticatien ond ument - dhe business
    to a actasäng Lcempany and buouidd
    dotaila abolt he acouiJcaivales,anial
    statamyerct, and cutomer uedtwanthines. D
    busines <actaskn
    Idqsemert outiing tfe
    ond Condition

    Submison o4hvice Jhe buine Subnits


    the his Can be
    dene euctuoicatly tiupyh
    documentotion, the
    tuoce,
    Ventiatisn - fhe fo tas vosfes i
    the invies ond the
    cHyeditoantfides the Cus tornesus. step
    ertuus that thu ineices valid and
    that he custoneu kay to

    ii fovance yment - nee veifed te ac toy note


    an Jadwance to the buineu
    0 / to 907.
    irveices Vyalue
    rinu teas, i held in
    fhe yemorin
    uti te inwoicu' Bsd

    VVCeutien qKaments - The dacta vey


    take ouoy tie
    cOl ction Uhey Cortact l tie customtu,
    Send somindeu I dnd the ayment buoct.

    fioa Settlernent ~ Ghee the cus tom eus invoice,


    tie tactoL the Gyemani
    to te buines atet daductin theiy

    Benfits
    Can tbe to meet ofuational
    heedi nvest in qusewth opatuniBes

    i Redueed ollrtion Bwden - fhe betness Can ocus n

    Opuation wthodt e hale o mandq


    (olsrtibns
    eble foorncg -factaong Can be leible seyce
    Ja bulndses
    moeded baALd n

    Credt tovoteeion - Nen - yecouue attouing Can


    Buotect AuineMes Customy Jdgault..
    Q vauable tool
    leuuall,managcsoÝng
    actasa Can be,
    warking cafstal,
    ufeo
    that leþestende
    leu challnqes due to dalaed
    Vcustenou
    Concebt ele.
    c9quial cencet
    ard aOcOunthg hat
    e e to tRe none
    Beuiod it takes

    and Sale.
    essentialy meawws the time takes
    Thuiness to ton, t
    Cash.

    nverby the timne taken


    inventay and Cen vert
    anto Buwducts Sal
    tm taken
    and the tme hat inwentoy held
    butou bing sold.
    Recevable deiod - Jhiu i ç he tirme takon
    ii tccounts ae has
    to colect Cash em customeos
    Jiellects the
    been made. t
    Sal arnd te

    ance :

    i Cash'ouo Manaement -t shartey operatung cycle


    indicatd tat Can Conerdt
    inventoy Snto Cash,
    Cruoal
    maintaiinq gusity
    i fen atisna! iency- Urdes tandng aeas
    tie CHcle
    helbs bine)
    Can sudce delays inuento levele,
    and inþroe callectRoh frcteses.
    Finandal Kannng -tt aeisk manaemont in
    budgetis
    Juwaning
    and
    Ca bital
    Flanin
    Jeqlivosns.

    oaumance Meaywemmert -Snvestasu anglygts ten


    dt tBe to
    Cornbany'3 hebba le
    I managing
    buineses Can
    they Cash ouw, yuduce nan ßng
    COss and Imoue ouetal
    ouo sinocia heal th.

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