Chapter 1 - Executive Summary
Impact of cash flow in the Turner Technics company happened during in the first half year. Consultancy group planned to control the situation and resume the growth. In this consultancy report, aimed to identify the company’s currently cash flow problem and analyses the previous six months trade issue. And, financial consultant group has designed the action plans to recommend improving the situation in second half year. The informational content to statement of cash inflow and outflow for company business (i.e.: gross margin, net profit margin, return on sales, debtor day, asset turnover and current ratio) have a significant impact in the interpretation of the company situation. It was found that the variable most influential is the variable operating cash flows which reflected negatively on the value of share in those company. Chapter 2 - Introduction
A company of Turner Technics was operating six months business and doing well with good sales recently leading to a healthy financial statement. But, there has a problem on tight cash which made buying stock difficult and expansion the business almost impossible. Our target is to sustain the business on coming six-months without running out of cash. And, formulate the recommendation to achieve the following goals: i) monthly turnover of £10,000.00, ii) monthly profit of £1,000.00 and iii) keep £7,500.00 in the bank.
Chapter 3 - Cash Flow in the company
Cash Flow is the different between cash receipts and cash disbursements. Analysis of the company’s cash flow was based on three major factors: Profitability, Efficiency and Liquidity. Profitability: Measuring the profitability of a company as indication of the business has been in its achievement of objective. i) Gross Margin - It is the difference between net sales the cost of goods sold. And, the percentage is divided by amount of gross margin and net sales (Belverd E. Needles et al, 2008:203). Gross Margin=Sales-Cost of...
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