Stationery Supplies uses a 24 percent annual interest rate to represent the cost of capital, and pays a liability insurance for 2% monthly rate of the value of the office supplies. The holding cost consists of both cost of capital and liability insurance cost. Determine the monthly holding cost rate:  ____%.

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Q: None

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A:

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Cash Outflow

The term "cash flow" basically means the flow of money in and out of business. The cash flow usually takes place from operational, investing, and financing activities. The cash flow normally denotes the amount of cash that is transferred either into the business as positive cash flows or out of business as expenses with regards to operating, investing, and financing activities.