A Company may hold the inventory with the various motives as stated below: 1) Transaction Motive: The company may be required to hold the inventory…

Through the efficient Management of Inventory of the wealth of owners will be maximised. To reduce the requirement of cash in business, inventory turnover should…

A.B.C. analysis is a selective technique of controlling different items of inventory. In actual practice, thousands of items are included in business as inventories. But…

Fixation of various inventory levels facilitates initiating of proper action in respect of the movement of various materials in time so that the various materials…

Include bills payable, notes payable and miscellaneous accruals. Net working capital is the excess of current assets over current liabilities here. Current assets are those…

Inventory turnover indicates the ratio of materials consumed to the average inventory held. It is calculated as below: Value of Material Consumed _______________________ Average inventory…

“Receivables are asset accounts representing amounts owned to a firm as a result of sale of goods or services in ordinary course of business.” Receivables…

There a 3 purposes of investing or maintaining Receivables. (1) Growth in Sales:- In comparison to cash sales, firm can make high sales by selling…

Credit Policy means such factors which affect the amount of investment in receivable and about which management has to take decisions for example credit period,…

From creation of receivables the firm gets a few advantages & it has to bear bad debts, administrative expenses, financing costs etc. In the management…