Subject name: Financial Management

Question 1 (10 marks) The credit sales form 25% of the sales and 25% of the cost of sales relate to credit sales. Africa Lean Consulting has a 30-day payment incorporated in its terms of trade. It is considering increasing the credit facilities in order to increase sales in the short term. Comment on the viability of this proposal and comment on the working capital management of AFRICA LEAN CONSULTING. TIPS: Comments should be then made about the comparison of the above. Sensible comparisons should be made and commented upon. GA Assessment - Memo Question 1 (10 marks) The credit sales form 25% of the sales and 25% of the cost of sales relate to credit sales. Africa Lean Consulting has a 30-day payment incorporated in its terms of trade. It is considering increasing the credit facilities in order to increase sales in the short term. Comment on the viability of this proposal and comment on the working capital management of AFRICA LEAN CONSULTING. TIPS: Comments should be then made about the comparison of the above. Sensible comparisons should be made and commented upon. GA Assessment - Memo