Inventory Costs plays a major role in ascertaining working capital requirements as well structuring cash flow statement.
Explanation:
In the given example,
inventory cost 40 percent
Inventory Value $400 million
Ratio of inventory cos ts to inventory value = Inventory Cost / Inventory Value
.
so in the current case it will be 40% x/$400 million
Hence, Inventory Cost 160 Million
Since the cost is fairly on a higher side at 40$ it should try to reduce it which will help in improving its bottom-line.
Company should focus on offering on discounts and promotions and reduce Obsolete Stock.
It should work on restructuring and organizing warehouse costs by prioritizing inventory based on their movements.
The procurement team should order in minimum quantities and benchmark reorder point.
You could tell them to take out a student loan, or a normal loan, or borrow money somewhere.
You could also pity them because of their unfortunate circumstances and let them suffer as they watch the private sector rule over the middle and lower class to no avail.
Answer: Operating cash flow, net working capital recovery, salvage values
Explanation:
The anticipated effects of a proposed project that should be considered when computing the cash flow for the final year of the project include the operating cash flow, net working capital recovery, and the salvage values.
It should be noted that the operating cash flows which consist of the net income and the non cash expenses with the salvage value and the redemption of working capital are all included during the computation of the cash flow for the final year of the project.
Because when a species evolves, not all of them change. Only the few who have changed the genes, for example, humans will reproduce and unless we wiped out the old species and prevent them from reproducing ( which we didn't ) then there would not be any apes left, but because we didn't the apes still exist.
