What is the logic of the percentage-of-sales method for constructing pro forma statements?
Answer to relevant QuestionsWhat does the firm’s cash conversion cycle represent? What is the financial manager’s goal with regard to it? Why? What is a collection policy? What is the typical sequence of actions taken by a firm when attempting to collect an overdue account? From the financial manager’s perspective, describe the role of reorder points, safety stock, MRP, MRPII, and a just-in-time system in managing a firm’s inventory. What is the difference between a ZBA and a controlled disbursement account? Are they direct substitutes? Why do firms employ cash concentration techniques? What are some of the popular transfer mechanisms used by firms to move funds from depository banks to their concentration banks?
Post your question