BF-QUIZ ACTIVE RECALL

Customers can be provided with quality products and services if the company has adequate fund to finance day-to-day operations.

A portion of the firm’s capital continuously converted into:

Working Capital may include:

Reasons for needing working capital

order to have sufficient stock of inventory to attain the sales goal, and to serve the costumers demand.

this will be intended to back up salaries and wages of employees, interest in payments, insurance premiums, taxes and licenses, or advertising budget.

under cases where the firm needs to maintain its operations until receivables are converted into cash.

unexpected expenses, possible delays in cash inflow, or decline in revenue.

refers to the process of determining the best uses of the financial sources of an organization to attain its predator means objectives and the procurement of the required funds at the least cost. 

Types of budgets for Financial Planning