BBC PVT. LTD AND WORKING CAPITAL CHALLENGES
Question # 00026205
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Updated on: 09/19/2014 12:07 AM Due on: 09/19/2014
This weeks’ Assignment:
1. BBC PVT. LTD AND WORKING CAPITAL CHALLENGES (#W12346)
Learning Objectives:
The case stresses the importance of working capital management in a business for its short term survival and lone-term growth, and can also help the student develop insight with respect to working capital management.
In addition, this case can be used to illustrate key issues regarding inventory accounting and management, payables/receivables management, credit management, cash management, JIT manufacturing and operating and cash cycles.
Students should use their textbooks from the managerial accounting I course to brush up on these topics as part of the week’s assignment.
Case Questions:
1. Was BBC’s working capital policy successful? Why or Why not?
2. BBC Inventory Turnover Ratio (ITR) decreases from 2009-2011. What were the actual ratios and how does this reflect on BBC’s inventory management?
3. Evaluate the company’s’ cash position with focus on its Credit policy towards receivables and payables.
4. Is BBC a growing Company? What areas should be improved for future growth.
5. Exchange Ideas/suggestions on how the company might generate the cash needed to be able to meet the requirements of the Railroad contract.
These Questions are suggestions to help you focus your analysis of the case, they have to be considered and will form part of your written case presentation. Your written presentation should follow the guidelines posted in course documents. Please read this document carefully before starting this weeks’ case write up.
Requirements for your paper:
• APA style (Do not forget the abstract, conclusions and references)
• You should follow the case study guidelines and address your answers for the questions through this guideline. (Do not forget your recommendations) Please read the instruction attached carefully.
1. BBC PVT. LTD AND WORKING CAPITAL CHALLENGES (#W12346)
Learning Objectives:
The case stresses the importance of working capital management in a business for its short term survival and lone-term growth, and can also help the student develop insight with respect to working capital management.
In addition, this case can be used to illustrate key issues regarding inventory accounting and management, payables/receivables management, credit management, cash management, JIT manufacturing and operating and cash cycles.
Students should use their textbooks from the managerial accounting I course to brush up on these topics as part of the week’s assignment.
Case Questions:
1. Was BBC’s working capital policy successful? Why or Why not?
2. BBC Inventory Turnover Ratio (ITR) decreases from 2009-2011. What were the actual ratios and how does this reflect on BBC’s inventory management?
3. Evaluate the company’s’ cash position with focus on its Credit policy towards receivables and payables.
4. Is BBC a growing Company? What areas should be improved for future growth.
5. Exchange Ideas/suggestions on how the company might generate the cash needed to be able to meet the requirements of the Railroad contract.
These Questions are suggestions to help you focus your analysis of the case, they have to be considered and will form part of your written case presentation. Your written presentation should follow the guidelines posted in course documents. Please read this document carefully before starting this weeks’ case write up.
Requirements for your paper:
• APA style (Do not forget the abstract, conclusions and references)
• You should follow the case study guidelines and address your answers for the questions through this guideline. (Do not forget your recommendations) Please read the instruction attached carefully.
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Rating:
/5
Solution: BBC PVT. LTD AND WORKING CAPITAL CHALLENGES