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(c) The company needs to reduce its current financial gearing however, the company also needs to generate sufficiently cash to payout its daily operating costs
(c) The company needs to reduce its current financial gearing however, the company also needs to generate sufficiently cash to payout its daily operating costs of payroll, rents, overheads and so forth. In addition to the above the company needs to produce excess and reserve cash for its capital expenditure requirement to increase its production, distribution and sales capacities. You are asked to (i) Identify the factors which should improve its operating cash flow and for new capital expenditure projects in future. Critically analyse the relative importance of long-term approaches to reduce the gearing and the aim to continue to invest in new business opportunities or plant expansion. (c) The company needs to reduce its current financial gearing however, the company also needs to generate sufficiently cash to payout its daily operating costs of payroll, rents, overheads and so forth. In addition to the above the company needs to produce excess and reserve cash for its capital expenditure requirement to increase its production, distribution and sales capacities. You are asked to (i) Identify the factors which should improve its operating cash flow and for new capital expenditure projects in future. Critically analyse the relative importance of long-term approaches to reduce the gearing and the aim to continue to invest in new business opportunities or plant expansion
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