Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

ABC Ltd Case solution

1,783 views

Published on

Finance Management Case Study solution for ABC LTD, MBA Graduates

Published in: Business
  • Be the first to comment

  • Be the first to like this

ABC Ltd Case solution

  1. 1. ABC Ltd. • For 2012 Sales = $6.0 million The collection pattern of ABC is as follows 70% of the payment is realized in the month of sales, 15% is received in the following month and 10% is received in the second month following the sales and 5% is never collected
  2. 2. ABC Ltd. • For 2011 Payment to the suppliers made after 30 days. Every month’s inflow/outflow is independent from other months’ because surplus of previous month hasn’t been added to next month’s inflow. The investment for all the positive cash flows each month is invested fully in short term securities and the interest is added to the next month. The credit period for the credit limit by the bank is of one month.
  3. 3. ABC Ltd. -200000 -100000 0 100000 200000 300000 400000 500000 1 2 3 4 5 6 7 8 9 10 11 12 Month Monthly Cash Budget 2011 Cash Buget Cash Bal with Credit
  4. 4. ABC Ltd. -400000 -200000 0 200000 400000 600000 800000 1000000 1200000 Monthly Cash Budget 2012 Cash Bal Cash Bal with Credit
  5. 5. ABC Ltd.

×