xecutive summary Kota is experiencing a number of problems. The manage director to prevent over production and over stocking has resulted to a sequence of hiring and layoffs each year. And the company is suffering from liquidity challenges because it is not in a position to finance its day-to-day activities, so its bank account stands over drawn. This situation has impacted negatively on the company's ability to repay its earlier loans and customers are upset because of delayed delivery.
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clinics and etc. Institutions take longer time to pay, while Company B distributes their diversified health-products to end-consumers or to the mass market by cash settlement or short credit term. Inventory turnover for Company A (3.08x) is higher than Company B (0.93x), that means inventories are sold and replaced faster than Company B. Company A has higher turnover because those institutions, especially hospitals “consume” health products faster and more. Lastly its show Company A has deep
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little customization available for service-specific needs. These challenges result in a services supply chain that protects service levels by storing a large amount of expensive inventory in a central location. Virtual inventory pooling offers a way to dramatically cut inventory holdings across the service chain. Inventory
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Overtrading: Definition, Causes, Consequences and Remedy We have heard the word “Overtrading” used by bankers, credit rating organization and analysts. It’s therefore important to understand what is Overtrading, how it is cause and what serious repercussions will happen and as financial executive what we can do. So what is Overtrading? In simple word, it denotes a condition in which the resources in particular the liquid resources of a business are insufficient to maintain the existing level of
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reports estimate of receivables at realizable value; one composite rate, an aging schedule ( most accurate) --asset: future economic benefit inventory: items held for sale in ordinary course of business or goods to e used in the production of goods to be sold --beginning inventory + cost of goods purchased = COGAS(available) = COGS + ending inventory --perpetual: purchase are debited
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that historic lead times[1] during the first 50 days of production often extend into several days, and so they have been unwilling to quote the shorter lead times to customers. They want your team to look into why this is occurring, and hopefully remedy the situation. Customer Demand Based on initial management analyses, customer demand for this new product is expected to be random, but the average demand will be level over the product’s 268-day lifetime. Pre-production market research suggested
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of one off expenses in the 2012 year as having direct bearing on this profit result. Additional stock values required to support increased business activity were well documented by significant increases in inventory held. We have also seen changes in increased the number of days that inventory is held, as well as an increase in debtors. It is unclear about why there have not been any efficiency gains with increased volume. The merging of administration and production onto one campus at Warriewood
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Introduction My role at Smackey Dog Food is to apply the audit procedures and objectives to this company. A cursory examination reveals that there are many areas where Smackey's accounting practices can be improved. At times, there are faults with the techniques that are being used. At other times, there are faults just as much with the control systems. Inadequate control systems are often the cause of problems with a company's accounting practices, and ensuring that proper controls are in
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1. Draw a system diagram showing the product and information flows between WGD and FastFit, starting with FastFit placement of an order through when it makes payment for goods received. 2. Receive sa an order 2. Receive sa an order 1. Makes an order 1. Makes an order WGD WGD 3. Sends FastFit an invoice for the order 3. Sends FastFit an invoice for the order FastFit FastFit 4. Sends order details( finalized shipping information) 4. Sends order details( finalized shipping
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STATEMENT OF PROBLEM: The problem of stores control has existed for too long. This problem is still with us to date and is a universal rather than a peculiar problem. Thus, it is not limited to a single organization but all business. It is not only limited to the private sector with its background motive of profit maximization but also to the public organizations. Many business organizations the world over have not give stock control the prominence it deserves in spite of its varied importance
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