Managing Profitability and Cash
14 important questions on Managing Profitability and Cash
What are the important questions regarding cash flow?
- Will you have enough cash to meet next Friday's payroll?
- Will you have enough cash to pay that big vendor invoice that's due the following Monday?
- Wll you have enough cash to pay the bankloan payment, the upcoming utility bills, and the real estate taxes that will be due at the end of the month?
What is the Profit and Loss Statement?
Which three questions define any business's profitability?
As a result of comparing the columns, the P&L allows you to quickly answer the three questions that define any business's profitability:
- Have you controlled your costs?
- Have you maintained or improved your gross margin?
- Have you maintained or increased sales?
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
For my 1st exam I got a C. Then, I started looking for ways to learn better and I came across Study Smart. Since then I have scored a A+, A, A- and another A. I highly recommend it to everyone who wants to hear it. I am so happy with it!!
I was struggling to finish all my first-year subjects for 3 years. Then I discovered Study Smart, which helped me to finish all of them within 3 months.
Because of StudySmart, things are going well in many ways. Before, I always had study stress and no time for anything. Now I feel calm and confident (because of the program). I used to score a B, now I usually score an A or A+.
Hey Chris, I really want to thank you very much for developing the platform, I usually got around C for my exams, now I scored an A+, an A and a A- !!
Since using Study Smart, my average has increased significantly. I even completed a statistics course with a A+ while I'm bad at statistics. I took on extra courses this year, because of Study Smart. Thanks so much!
Ever since I started studying with StudySmart I passed all my exams !!! No more re-sits!! At first, I was happy with a pass and now I only get good grades. Many thanks!
I aced all the courses I studied with Study Smart. For law, I first scored a D, and now an A! I’m 100% sure that I’ll pass all the courses I study with Study Smart.
I always thought I studied well. My grades were fine. I could never have imagined that applying these study skills would have such a huge and direct impact on my grades, my speed and the pleasure I have in learning.
For the first time, I finally feel totally confident about the way I learn. I have the perfect overview and make great progress in terms of speed and the grades I get. Thanks, Chris!
I immediately started to enjoy learning again, and my grades soared. All of a sudden, everything went better. I highly recommend Study Smart to all students..
Being able to create my materials online made the process of studying so much smoother and quicker. I no longer have to spend a huge amount of my time on creating my summaries.
At first, my notes were a mess. Now I use Study Smart to take my notes in a perfectly structured way. It helps me to save a lot of time and do other things I enjoy.
Students that study with Study Smart get better grades. The system applies all the learning methods in such a way that both well-performing students and students who struggle perform much better.
Hi Chris, I would like to thank you very much. Last year I scored C on a course, and this year I got an A+ thanks to your method! Thank you very much!
The largest effect is that my child is more enthusiastic about school! Every parent wants their children to be happy at school, Study Smart made it happen.
In high school, I failed several exams, and that has really changed now. I actually needed this tool very much back then. Since I started studying with StudySmart, I haven't had any D's. My average score is now an A and those are results I would have never had in the past
With my old method, I passed only 3 out of 8 courses. Since I started taking my notes digitally in Study Smart, I have passed all my courses on the first try. For me, StudySmart takes away the stress of wondering if I will pass or not.
Thanks to StudySmart, I passed all my exams, and with better grades than before! On top of that, I have mastered a very good study method now, which I am confident will help me earn my degree.
What is a balance sheet?
What are the two overall points about the numbers, ratio, and percentages that come from those financial statements?
- Comparison work best.
- The industry matters.
What is return on sales (R.O.S.)?
How do you determine the number of days in receivables?
Generally speaking, fewer than 30 days in receivables is considered excellent, between 30 and 45 days is acceptable, and more than 45 is cause for concern.
What are the benefits of improving your efficiency at handling inventory?
- Profitability: the less inventory you have to write off, the more profitable you become.
- Cash flow: the fewer dollars you have invested in inventory, the more cash you have in your bank account.
Which tips should be used when inventory is an integral part of your small business?
- Gather information on past purchasing and sales transactions. The more information on past purchasing and sales transactions you have, the better your future purchasing decisions can be.
- Divide your inventory into small, manageable pieces.
- Make sure that you have a workable system and qualified employees in place at the inventory-handling corners: shipping and receiving.
- Take frequent physical inventories.
- When selecting suppliers, don't simply settle on the supplier with the lowest price. Include delivery time and shipping dependability at or near the top of your criteria.
What are the tips regarding how to do business with paying customers and how to collect your accounts receivable?
- Use a credit application.
- Evaluate every applicant. Does the applicant have the ability to pay? Has she indicated by her past actions a willingness to pay on time? Can you make a reasonable profit on sales to this account?
- Ask for a financial statement.
- Check credit.
- Establish terms.
How can you manage your accounts receivable?
- Bill promptly. Bill the same day your ship.
- Track the time it takes your customers to pay their bills. You need to age all outstanding receivables at least once a month.
- Begin collections promptly.
- Utilize a carrying charge or interest charge.
- Don't ship to nonpayers.
- Involve the boss. A call from the owner or boss is always more effective than a call from the bookkeeper.
- Use a collection agency only as a last resort. They are expensive and not known for their consideration and politeness.
What are the three ways to increase your business's profitability?
- To decrease expenses.
- To increase margins.
- To increase sales.
Start with decreasing expenses, after that increasing margins and than, the toughest job, increasing sales.
How does Zero-based budgeting work?
How do you increase sales?
Try our study magic for free
a PDF, study it super fast
- No sign up, email or credit card needed!
- AI makes unlimited flashcards
- Get unlimited quizzes and tests
- Ask AI anything
- No sign up, email or credit card needed!
- Have and keep perfect overview
- Make flashcards, notes and mind maps
- Review, test and score!
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
