Upon receipt of the budget, the teammanager, has now informed you that, inkeeping with industry players, thatmanagement has indicated an industryrequirement to maintain a minimum cashbalance of $155,000 each month. He hasalso noted that management is very keenon keeping the gearing ratio of the businessas low as possible and would thereforeprefer to cushion any gaps internally usingequity financing.Based on the budget prepared, will thebusiness be achieving this desired industrytarget? Suggest three (3) internal strategiesthat may be employed by management toimprove the organization's monthly cashflow and militate against or reduce anypossible shortfall reflected in the budgetprepared. Each strategy must be fullyexplained.

Budget is consider to important for businesses. and investors in order to understand and take…

on receipt of the budget, the team nager, has now informed you that, in eping with industry players, that nagement has indicated an industry uirement to maintain a minimum cash ance of $155,000 each month. He has p noted that management is very keen keeping the gearing ratio of the business low as possible and would therefore efer to cushion any gaps internally using uity financing. sed on the budget prepared, will the siness be achieving this desired industry get? Suggest three (3) internal strategies t may be employed by management to prove the organization's monthly cash w and militate against or reduce any ssible shortfall reflected in the budget pared. Each strategy must be fully

on receipt of the budget, the team nager, has now informed you that, in eping with industry players, that nagement has indicated an industry uirement to maintain a minimum cash ance of $155,000 each month. He has p noted that management is very keen keeping the gearing ratio of the business low as possible and would therefore efer to cushion any gaps internally using uity financing. sed on the budget prepared, will the siness be achieving this desired industry get? Suggest three (3) internal strategies t may be employed by management to prove the organization's monthly cash w and militate against or reduce any ssible shortfall reflected in the budget pared. Each strategy must be fully

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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