Introduction to Accounting and finance -- Economics, Finance and Assignment - 7

excogitation to Accounting and finance -- Economics, Finance and Management - Assignment ExampleThe result is that immediately on remuneration for bulk purchases from UK supplier, the company will be requiring more than the on tap(predicate) OD facility of 25000. It appears from projected exchange hunt downs that after meeting payment for bulk purchases the company will be in position to coiffe its liquidity within the available line of credit.It must be remembered that by using cash flow forecast, an entrepreneur can predict and plain the cash flow of a business.(Justin G. Longenecker, varlet 390)ii . While homework cash flows, one of the major issues over which managers should concentrate in resolving the liquidity problems are want an extended credit design from suppliers as the company is making bulk purchases. Second issue is to onrush the entrust to raise line of credit from the existing limit of 25000.Third issue that requires managements tightness is to take advan tage of the positive liquid position emerging from October 2010. The management must understand that cash flow forecast is for internal purposes and is not subject to the rules we will lay for preparing profit and loss vizor and balance sheet.(David Crowther, page 24)iii.Profits are the funds that are left at the end of the period when all sales are booked and expenses are tallied. (Craig Cochran, page 22)iv. Cash represent liquidity available with the company and profits are the result of good performance of any business. Any one who has compared income statements and bank statements knows that profit never makes its way to the bank account exactly the same amount that appeared on the income statement.(Gene Siciliano, page 76)v. Profit calculation involve measurement of non- cash transactions in order to arrive at a reasonably good assessment of a business activities over an accounting period, particular when assemblage basis of accountancy is in operation. Credit sales and credi t purchases are considered for the purposes