|
|
|
| |
| HOW IT WORKS - Cash V Trade |
| |
| |
|
|
| |
| Case study example |
| |
| |
Triprint Ltd is a company specializing in high-end full colour print.
Production runs at an average of 70% capacity.
Average monthly turnover is €1,000,000.
Average gross profit margin is 35% ( Cost of sales = 65% )
Average fixed costs run at €200,000 |
|
| |
| |
The company recently acquired an adjoining warehouse using cash reserves, however the fixtures and fittings ran well over budget leaving cash flow unusually tight. |
|
| |
| |
The Finance Director insists that the company should trade it's way into positive cash flow without further short or long term borrowing. The sales team have been asked to give an extra effort to utilize the 30% spare capacity and purchasing staff have been told to cut costs and cash expenditure wherever possible. |
|
| |
| |
Nevertheless a number of non standard requirements have now become necessary purchases this month: The new warehouse needs mezzanine flooring, a security alarm system and a new forklift, a new telephone system is needed and specialized graphic design and finishing for a specific client need to be sub-contracted out. |
|
| |
| |
The budgeted cost of the items are listed below. The management are currently exploring the possibility of acquiring these specific needs through their local trade exchange and pay with spare production capacity in order to limit cash spending. |
|
| |
 |
| |
| |
| More on how it Works |
| |
|
|
| |
| |