Introduction to Accounting and finance -- Economics, Finance and Assignment - 4

Introduction to Accounting and finance -- Economics, Finance and Management - Assignment ExampleThey may buy from either U.K or South the States depending upon the option which will help them to increase the cash flow.Profit is generated from the sales figure and the purchase figure taking the expenses into consideration. It may be operating or non-operating expenses in nature. We consider both cash sales and credit sales for the particular period and purchases both in cash and credit. But expenses ar deducted which are made only during that particular period and not which are advance in nature.The sources available for financing are basically internal sources and external sources. indwelling sources are those from where we can get finance like that of the equity option for raising funds from the equity holders or issuing naked as a jaybird equity shares to breathing or new prospects.Since, Hidetoseek Ltds old supplier is in U.K. a mutual trust and a relationship is well build up . Now if they hang on over to South America the company needs to build the same relationship and trust but it will require a lot of quantify to adjust. But looking at the current position of the companys cash flow statement it is not wise enough to go for new relationship as cost is associated with it. youthful terms with new supplier regarding the credit facility, credit period, cash discount, trade discount may create a problem for the management in operating. Present situation of cash flow is not heavy and taking such risk might adversely blow on managing cash.The work culture, perception of the new suppliers towards the company need to be analyzed and build a relationship according to it which requires considerable timeNew set up for transportation needs cash which will ultimately effect the cash flow statement which is not in a good position. Delivery on time may get affected as new suppliers may not understand the importance of Just-in-Time delivery concept. The question o f timbre may be in danger. Quality control is very important