Question
WXY Company is engaged in the business of export of different type of clothes. In the past years, the performance of the company had been
WXY Company is engaged in the business of export of different type of clothes. In the past years, the performance of the company had been up to the expectations. In line with the modern technology, the company decided to upgrade its machines. For this, the finance manager, expected the amount of funds required and the timings. This will help the company in linking the investment and the financing decisions on a continuous basis. Therefore, the finance manager began with the preparation of a sales forecast for the next four years. He collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources of the business. For the remaining funds he is trying to find out alternative sources from outside like loan from bank and so on.
Hence, answer the following question based on the above scenario not less 700 words.
- What is the role of finance manager and what are the financial decisions Involved in the above case. Discuss the various financial decisions relevant in the case?
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