First we need to project the cash flow statement, and Employee the companies fund in short term investment. AlongWith that we have to check expenses. And maintain the
Liquid assets
PROJECTED CASH FLOW STATEMENT IS THE GUIDED STICK. OUR SALES, REALISATIONS, AND FIXED AND VARIABLE EXPENSES NEED TO BE KEPT IN MIND WHILE JUDGING THE BALANCED NEED OF LIQUID ASSESTS. WE MAY CONSIDER THE SHORT TERM INVESTMENTS WITH REFERENCE TO INTEREST RATE AND SURPLUS FUNDS.
The standard current ratio is 1: 1.33 means any firm / company is having adequate funds to meet its obligation in time.The firm has to maintain core current assets which is easily realisable at all times. The laid down bench mark ratio to maintain the ratio of core current assets to Current liablities is 1:1
Liquid assets
PROJECTED CASH FLOW STATEMENT IS THE GUIDED STICK. OUR SALES, REALISATIONS, AND FIXED AND VARIABLE EXPENSES NEED TO BE KEPT IN MIND WHILE JUDGING THE BALANCED NEED OF LIQUID ASSESTS. WE MAY CONSIDER THE SHORT TERM INVESTMENTS WITH REFERENCE TO INTEREST RATE AND SURPLUS FUNDS.
The standard current ratio is 1: 1.33 means any firm / company is having adequate funds to meet its obligation in time.The firm has to maintain core current assets which is easily realisable at all times. The laid down bench mark ratio to maintain the ratio of core current assets to Current liablities is 1:1
