NAC 955: Introduction To Financial Management
Introduction to Financial Management
FIN 254 (Assignment)
Spring 2014 (Due on 24th April 10-11.00 AM)
AT NAC 955
1. You have recently started working with a new company and have been having discussions with your employer’s superannuation consultants about providing for your retirement. You plan to retire 35 years from today, which is 1st October 2008. After discussions with the consultants you agree that you should plan for an income of $80,000 per year for a period of 20 years. You plan to retire on 1st October 2043 but will use your accumulated long service and annual leave payments for the first three years of your retirement and receive the first of the 20 annual retirement payments of $80,000 on 1st October 2046.
During your …show more content…
Generally a high value of accounts receivable turnover is favorable and lower figure may indicate inefficiency in collecting outstanding sales. Increase in accounts receivable turnover overtime generally indicates improvement in the process of cash collection on credit sales.
However, a normal level of receivables turnover is different for different industries. Also, very high values of this ratio may not be favorable, if achieved by extremely strict credit terms since such policies may repel potential buyers.
C) From the information and ratios above give some brief comments on SCC’s operations particularly in relation to current asset management?
SCC makes mediocre position what current ratio said.
Over the year and year it’s really close with poorer figure. Since we know the ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that …show more content…
Abnormally high value of current ratio may indicate existence of idle or underutilized resources in the company.
Basically SCC act upon in reality very shocking regard as on overall performance when I see my eyes on ROA ratio. Over the year and year it’s going down. Because increased ROA indicates improved performance. The assets of the company are comprised of both debt and equity. Both of these types of financing are used to fund the operations of the company. The ROA figure gives investors an idea of how effectively the company is converting the money it has to invest into net income. The higher the ROA number, the better, because the company is earning more money on less investment.
This is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets. The quick ratio measures the dollar amount of liquid assets available for each dollar of current liabilities. Thus, a quick ratio (of 1.5) means that
FIN 254 (Assignment)
Spring 2014 (Due on 24th April 10-11.00 AM)
AT NAC 955
1. You have recently started working with a new company and have been having discussions with your employer’s superannuation consultants about providing for your retirement. You plan to retire 35 years from today, which is 1st October 2008. After discussions with the consultants you agree that you should plan for an income of $80,000 per year for a period of 20 years. You plan to retire on 1st October 2043 but will use your accumulated long service and annual leave payments for the first three years of your retirement and receive the first of the 20 annual retirement payments of $80,000 on 1st October 2046.
During your …show more content…
Generally a high value of accounts receivable turnover is favorable and lower figure may indicate inefficiency in collecting outstanding sales. Increase in accounts receivable turnover overtime generally indicates improvement in the process of cash collection on credit sales.
However, a normal level of receivables turnover is different for different industries. Also, very high values of this ratio may not be favorable, if achieved by extremely strict credit terms since such policies may repel potential buyers.
C) From the information and ratios above give some brief comments on SCC’s operations particularly in relation to current asset management?
SCC makes mediocre position what current ratio said.
Over the year and year it’s really close with poorer figure. Since we know the ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that …show more content…
Abnormally high value of current ratio may indicate existence of idle or underutilized resources in the company.
Basically SCC act upon in reality very shocking regard as on overall performance when I see my eyes on ROA ratio. Over the year and year it’s going down. Because increased ROA indicates improved performance. The assets of the company are comprised of both debt and equity. Both of these types of financing are used to fund the operations of the company. The ROA figure gives investors an idea of how effectively the company is converting the money it has to invest into net income. The higher the ROA number, the better, because the company is earning more money on less investment.
This is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets. The quick ratio measures the dollar amount of liquid assets available for each dollar of current liabilities. Thus, a quick ratio (of 1.5) means that