Net Current Assets

Question 1

Net currency assets

Answer 1

Money available in the business to find day to day expenditure

+Consider unnecessary costs
-Pressure is applied to customers for shorter credit terms
+cash flow can be managed effectively
- lower stocks amounts might not meet demands

Question 2

Sale of assets

Answer 2

Selling an item to get cash into the business
-amount sold might not be true reflection of value
- no interests rate
+reduces capital (money) tied up in the assets
-assets might need to be leased(rent) back
+ can get rid of assets that no longer need to be in the business

Question 3

Net cash flow

Answer 3

Inflow of cash compare to outflow

Inflow - outflow