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QUESTION 4 Currently, ABS Company has an issues with the working capital. ABS is running the food manufacturing. The firm only has RM20,000 cash in the bank and the critical problem faced with its account receivable. Its day sales outstanding is 55 days compared to industry 25 days. Its turnover ratio is only 5 times compared to the industry 12%. Currently, the firm do not invest in capital market or money market. Required: As a finance manager in the company, you are required to determine the problem may the company and to overcome the issues. Assess your above findings and present to your CFO. arise in

QUESTION 4 Currently, ABS Company has an issues with the working capital. ABS is running the food manufacturing. The firm only has RM20,000 cash in the bank and the critical problem faced with its account receivable. Its day sales outstanding is 55 days compared to industry 25 days. Its turnover ratio is only 5 times compared to the industry 12%. Currently, the firm do not invest in capital market or money market. Required: As a finance manager in the company, you are required to determine the problem may the company and to overcome the issues. Assess your above findings and present to your CFO. arise in

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 4 Currently, ABS Company has an issues with the working capital. ABS is running the food manufacturing. The firm only has RM20,000 cash in the bank and the critical problem faced with its account receivable. Its day sales outstanding is 55 days compared to industry 25 days. Its turnover ratio is only 5 times compared to the industry 12%. Currently, the firm do not invest in capital market or money market. Required: As a finance manager in the company, you are required to determine the problem may the company and to overcome the issues. Assess your above findings and present to your CFO. arise in
Transcribed Image Text:QUESTION 4 Currently, ABS Company has an issues with the working capital. ABS is running the food manufacturing. The firm only has RM20,000 cash in the bank and the critical problem faced with its account receivable. Its day sales outstanding is 55 days compared to industry 25 days. Its turnover ratio is only 5 times compared to the industry 12%. Currently, the firm do not invest in capital market or money market. Required: As a finance manager in the company, you are required to determine the problem may the company and to overcome the issues. Assess your above findings and present to your CFO. arise in
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