Managing Growth Assignment Essay Example | Topics and Well Written Essays - 500 words

Managing Growth Assignment - see Exampleapitalizing on supplier discount and reducing the inventory because most of long-term assets are unbending and may lock in small companies operations in terms of finance and this has serious consequences on the ships companys returns considering their small working capital.Considering that income statement basically looks at revenue, expenses and profit or impairment made, balance winding-clothes will assist in tracking changes in sales revenue and expenses along the three phases in a simulation of 10 years and indicate the financial condition of the company in each phase. This will help business organisation managers to explain to the business lenders and every investors interested to nurse their shares in the company how adapted stark naked mechanisms such as effectiveness of advertising methods to reap new customers, increase in customers discounts such as after-sale services has changed sales and expenses that reciprocate a change i n assets and liabilities of the business. This information once put in inventory records will help business lenders and shareowners understand the set up in order to assess the health of the business. Therefore, when the company has a positive financial statement, there is an prediction of increase in working capital resulting from increase in net worth of the company that attract more business lenders and shareowners who become confident of going deep into their pockets to invest to a company with halcyon net worth. This will help to optimize on external credit provided by business lenders and shareowners to fatten up business operations in order to increase profit which is the core objective of every business enterprise (Scott, 2005).The purpose of considering taking opportunities that will enable a small business to win some(prenominal) new customers, capitalize on suppliers discount and reducing inventory is because these are transactions that often affects the exchange fl ow of a business and are neither reported in the income statement nor balance sheet but are