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rawal

0450-21-F-M-12-3d

myrah

TOPIC QUESTION - PAPER 1

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myrah

October 26, 2025 at 10:16:01 PM

May/June 2022

Version 3

5.0 Financial Information and Decisions

5.2 Cash-Flow Forecasting and Working Capital

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YOUR ANSWER

Way 1: Reducing bonuses
Explaining: By using more bonuses in addition to wages/salary, SMR is increasing their cash outflows which contributes to cahs flow problems
Way 2: Using retained profit to improve the quality of products, increasing cash inflow in the long term
Explanation: By using retained profit, they have quick access and wouldn't increase any debts. This finance could then be used to improve the quality of their snacks so they can charge more and increase overall cash inflow

Grade: 

6/6

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