CASH FLOW/WORKING CAPITAL PROBLEMS

ASSETS; RESOURCE OWN BY THE COMPANY
1. NON CURRENT ASSET(FIXED ASSETS) HOLD FOR A YEAR OR MORE, CAN BE USED REPEATEDLY AND ARE NOT INTENDED FOR IMMEDIATE RESALE
  1. TANGIBLE ASSETS; PHYSICAL ASSETS
  2. INTANGIBLE ASSETS; NOT HAVE A PHYSICAL ASSET
2. CURRENT ASSETS;STOCK, DEBTORS,CASH
LIABILITIES
1. DEBTS OWED BY THE BUSINESS
2. LONG TERM;DUE AFTER MORE THAN ONE YEAR
3. CURRENTS LIABLILITIES; WITHIN ONE YEAR( TRADE CREDITIORS, BANK OVERDRAFT)
EQUITY OR CAPTIAL;FUNDS INVESTED IN THE COMPANY
1. SHAEHOLDERS FUNDS; INVESTED AT THE START
2. RESERVES; RETAINED PROFIT(VALUE INCREASES BY PROFIT REDUCED BY LOSES
ALLOWING TO MUCH CREDIT
1. WAITING FOR MONEY;FORCED TO BORROW=VUNERABLE
STOCKPILLING
1. BUILDING UP STOCK LEVELS;TIES UP MONEY/ITEMS MAY NEED TO CHANGE ACCORDINGLY
OVERPBORROWING
1. CANNOT PAY BACK AMOUNTS OWED ON LOANS(INTEREST+CAPITAL) IN THE PERIOD IT IS DUE
UNDERESTIMATING INFLATION
1. RISE IN GENERALLEVELS OF PRICE THAT WAS NOT FORSEEN;COST RISING
UNFORSEEN EXPENDITURE
1. COSTS THAT WERE NOT FORESEEN OR BUDGETED FOR BUT ARE NECESSARY FOR THE BUSINESS
CHANGES IN DEMAND
1. CAUSED BY RECESSION CHANGES IN FASHION/SEASONAL FACTORS(COULD RESULT IN LESS OR MORE SALES)
SEASONAL FACTORS
1. CAUSED BY THE RECESSION/ BY THE TIME OF YEAR
PRODUCTION PROBLEMS
1. INTERUPTIONS TO PRODUCTION DELAY THE PRODUCE REACHING THE MARKET
OVERTRADING
1. EXPANDS AND THEREFORE NEEDS MORECASH TO FINANCE EXTRA

Resource summary

	Created by Holly Butcher almost 10 years ago