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NO HANDWRITTEN ANSWERS PLEASE A-Now that you have analyzed income statements and

ID: 396824 • Letter: N

Question

NO HANDWRITTEN ANSWERS PLEASE

A-Now that you have analyzed income statements and cash flow sources, reflect on the cash position in large companies and respond to the following: What is the most important aspect of understanding operating profit and the cash position of a company against the bottom line?

B-If you were starting your own business or managing an organization's records, would you subscribe to an automated online backup service?

C-What could happen if management does not link its logistics decisions to the demands of the business operation, including the needs of customers?

D-What are some of the risks in retaining inventory for too long in a small business setting?

Explanation / Answer

A- Understanding operating profit and cash position of a company against the bottom line is it directly dependent on the availability of how much profit the company makes on specific dollar of sale. After the payment of variable cost of production as well as other involved cost in production but excluding the payment of interest on taxes bottom line on the profit of operations can be calculated field operating margin can be calculated by dividing companies operating profit by its net sales.

B- Definitely if I would have managing my home organisation or own business then I would have preferred auto backup facility for backing up the records. This type of approach would have provided me and advantage over any kind of Miss happening inside the organisation. Auto backup would have ensured a safe place for all the records involved in transactions as well as other specific import in documentations. Which type of approach would have definitely help me to maintain high quality standard in retrieval of the data if needed which can be very beneficial for organisations in some manners.

C- If management does not link its logistics decision to the demand of the business operations in then increment in the overall inventory cost as well as production of collaboration between the supply and demand can occur. As this type of void in linkage would directly affect the inventory management system affecting availability of opportunities for logistic systems for an organisation.

D-If an inventory is retained for too long time in small business then the overall holding cost of the inventory would increase drastically as the cycle of flow of products you totally stop. Outdated inventory can also be harmful in terms of expiration sates included on the products which could be harmful for the company in form of inductance of the overall profit generated.