Short - Term Financial Management Case Study Example | Topics and Well Written Essays - 1000 words

Short - Term Financial Management - Case Study ExampleThe trice section exit also come up with accounts receivable investment assuming the annual gross sales of the attach to is 4 million dollars. Consequently, the paper depart come up with the number of times the follow bequeath turn over some of its inventories.The CCC of the partnership measures the number od long time it will take the company cash in from their client from their previous inventories (Sagner, 2014). Above CCC indicates that the payable will be make in spite of appearance 67 days and the inventory will be made procurable to the client and afterwards sold to a singleclient on account. The client will then pay for the inventories within 67 days after buying it. The amount of days taken between the vendor requital and when the retail merchant receives the money from the client will be 67 days. The company has a smaller deliberation meaning that it is good to the company. This means that the money of the company is tied in the inventory at a manageable time (Studyfinance.com, 2015)The CCC of the company measures the number od days it will take the company cash in from their client from their previous inventories. Above CCC indicates that the payable will be made within 51 days and the inventory will be made available to the client and later sold to a singleclient on account. The client will then pay for the inventories within 51 days days after buying it. The amount of days taken between the vendor payment and when the retailer receives the money from the client will be 51 days (Studyfinance.com, 2015).When the company maintains the accounts receivable of 5.589 million dollars, it will enable the company to extend loans free from interest to their customers. The accounts receivable investment is important for the company to arrest out some of its business. From the calculation, the investment accounts receivable of 5.589 million dollars is healthy for the company. The figure is du e to the controlled ambition of the company to collect their policies from the