A manufacturer who fabricates gates and grills is not having enough retail sale due to which Cash falls short in Balance sheet.
What is the solution?
Can we introduce Cash through Capital A/C?
Cash from capital is already there in the bank. Check which is cheaper- cost of capital or cost of overdraft interest. Then cut off unwanted activities to save some expenses. In cash management, there are two methods of cash management- Economic order quantity and baumols model. The first is the best as you are experiencing low sales.
CAclubindia
