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Next month, a garage that specialises in servicing commercial vehicles, is considering offering 50% of its customers a two month credit period for payment, as opposed to asking all its customers to pay up front. The owner of the garage has also managed to increase the time it needs to make its payments by negotiating with some of its suppliers. As of next month, 60% of the garages outflows will be payable immediately with the rest payable in one month's time, Outflows are estimated to be 2/5 of revenue each month. The owner of the garage estimates that revenue next month will be $40,000. Calculate the total cash inflows, total cash outflows and net cash flow for next month.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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