![]() CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. Each investment is unique and involves unique risks. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. A hyperlink to or positive reference to or review of a broker or exchange should not be understood to be an endorsement of that broker or exchange’s products or services. Notwithstanding any such relationship, no responsibility is accepted for the conduct of any third party nor the content or functionality of their websites or applications. We may receive financial compensation from these third parties. Please be aware that some of the links on this site will direct you to the websites of third parties, some of whom are marketing affiliates and/or business partners of this site and/or its owners, operators and affiliates. ![]() Using this information the team then calculated the accounts receivable forecast as: ![]() Next, the team took a look at the sales forecast of $25,700,000, which is roughly double a normal month's sales, resulting in an average sales per day value of: Using this information CFO's analyst team calculated average receivables collection period as: Total sales revenue in the same timeframe was found to be $154,425,000. Her team of analysts first examined data for the last twelve months, and found the starting balance of accounts receivable to be $14,756,000 and the ending balance $16,129,000. The CFO is concerned the surge in accounts receivable will consume too much of the cash earmarked for the capital project launch, so she asked her analytical team to provide a projection of the accounts receivable balance at the end of the promotion. In the same timeframe, the company is planning to launch a large capital program involving the construction of a new fabrication plant. The CFO of Company ABC was just informed the sales department is going to run a national promotion that's expected to result in a surge in sales revenue in addition to accounts receivable. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |