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Zama Zama Carpentry is into the manufacture of furniture and of late business has been booming. In order to increase its volume of sales, it

Zama Zama Carpentry is into the manufacture of furniture and of late business has been booming. In order to increase its volume of sales, it is selling its products on 120 day terms where a customer pays 30% deposit and the balance with interest spread over 120 days. It has received an urgent order from a big furniture distributor and since most of the customers have not yet paid, it it cash strung as its suppliers do not supply their raw materials on credit. Management has decided to look short-term financing to other types of financing, for them to meet the order. As the financial manager of the organisations, write a memo to the Managing Director, to compare and contrast the different sources of short-term financing and discussing the advantages and disadvantages of short-term financing

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