Description of George’s Trains working capital practices, including methods of capital budgeting analysis Potential pitfalls of George’s Trains capital budgeting practices that George needs to be awa

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**** ***** ******** ********** ****** ** * business **** *** **** ***** **** * ****** ** ********** ********** ***** business ********* ** **** ** quick and ***** reactions **** **** critical ** the ******* ** the firm’s ******* ** ******* ** **** ***** working capital *** ******* budgeting ********* that enabled * ********** ******* *** *********** financial *********** ****** *** challenges ** excellent net working capital ******** ******** by ****** ******** ************ ********** ********* Baños-Caballero ************** *** **************** ****** **** **** **** ** ** approach that *** **** * ******* ****** *********** *** ******** keeping *** ********* at * reasonable ***** provided ****** **** ** ********* *********** ** maintain ********** ******* ******* levels ***** **** ********** ******** *** ******** ** a ***** scale ** ******** less ******* capital *** thus ********** decision ** keep ********* ** *** ** ******** makes *********** strives ** ******** *** ****** of ****** ********* ******* ******* ** *********** *** ********* at * ********** ********** ********* is considered ** ** * firm’s ***** ******** ** it ***** ******* become * liability **** ** **** not **** ***************** et ** 2014)In ******* **** ******** allows *** to ******** ** **** ** ********** ********* in * manner that ********** ***** ***** keeping ********* ********** ** **** ****** **** **** ** ***** inventory during ***** ****** for ******** ***** ********* ** **** ******* ********** that ** anticipates ********* demand *** orders *** ********* ******************* capital budgeting ** * ******** **** ******** focusing ** *** ********* ******* ** successful investments which ****** require ingenious efforts to ******* *** products as **** ** ***** ******** ******** ** a ***** **** (Byrd et ** ***** ******* 2014) ****** manages ** improve *** quality ** *** Classic ****** Trains as **** ** ********* * *** ******* **** **** the ****** ***** He chooses ** ** with the ***** ** ** ******* to ********* smaller trains *** **** carsKashyap ****** highlights that ********** decisions **** align ********** with ******* trends **** * significant **** **** ** ***** ** ********* ************** ******* ****** * ******** **** ****** aligns himself **** ** ********* inventory ** ******** *** ****** trends ****** *** market *** *********** ******* ******* practices and capital ********* analysis ********** **** George *** a ********** ******** ****** *** ********** **** ***** *** ******** of ******** ****** **** ***** ****** George’s ******* ********** ******** ********** **** ** decides ** buy the ******** ** **** ** ********* *** new ******* lineAnalyze *** potential ******** ** his ******* ********* practices that ****** ****** ** ***** ** A **** important capital ********* ******** ******** by George involves analyzing data to ******* ****** ** ******** ******** However a major pitfall that George ****** be ***** of is *** **** that ******** ********* *** ********* unpredictable ****** ********** ** ******* ******* ** ******** purchasing ****** as accurately ** ******** ********* **** *********** ***** ************ ** this ********* ***** ******** *** ******* of *** ******** suffering *** *********** costs of ********* predictions Another ******* ** * ********* **** ******** ******* ********* is **** of ******** on accounting ******* **** **** ******** ****** George ***** **************** ********* **** purchasing *** ******** *** ********* in * *** ******* **** ******* he’s ************ ** *** **** net ******* values ******* ** fails to ******** *** possibility ** ******* ******* *** regardless ** the **** **** he makes positive ***** ****** critical **** he considers **** *** ***** *** benefits ** * capital ********** in *** future· ******* a ****** ********* ** **** ***** *** ********** ****** ***** any *********** ******* from *** ***** **** ***** of improvement ** *** ************** ** ******** ****** **** * statement of **** *********** ******** crucial *********** about * ************ **** receipts **** ******** ** well ** the net change ** **** resulting **** *** ********* ********* and ********* ********** within * particular ****** *********** ********** ***** Store ***** ** ** ******* of ******** ********* ******* *** ***** on *** description of *** business’s ********** *** activities *** following ***** be * simple ********* ** cash ***** *** George’s TrainsGeorge’s ***** ************** ** **** ******** *** **** ****** Dec ******** ***** **** ********* ***************** ***** ****************** Cash **** ******************************************************** ********* expenses$3000 Income ********************* **** from operating ************************ ***** **** ********* *********************** ******************** **** ******** ** ********* activities ($6000) Cash ***** **** financing *********************** ** ***************** **** **** ** ********* activities (5000)   Net Cash$19000Based on *** above hypothetical statement ** **** ***** for ********** ****** ***** *** area ** *********** that would ** *********** ******** ********* *** ********* ******* ** include ***** **** ***** *** so **** types that *** ** demand ** children ****** *** current ****** **** ** ***** ****** **** *** trucks and ** ********* these ******** to *** ***************** ** so ***** ****** **** ******** *** store’s ***** ****** ** ********* ** more ********* **** ***** ********* ** increased **** ******* ** *** form ** net sales income ******* area ******** ********** operating ***** ** innovating crucial ******** ********** *** ******** ** investing ** ******** ******* **** ****** ********* ** ********* toys ** *********** ** ******** ** ** ************************************ * García-Teruel P * ***** Martínez-Solano * (2014) Working capital ********** ********* *********** *** ********* ****************** of Business ************* 332-338Byrd * Hickman * ***** McPherson M ****** Managerial Finance *********** ******** ********* **** ********************************** * A **** * J ***** Suarez F * ****** Services industry evolution and *** *********** ********** ** ******* firmsStrategic ********** ************ ************** A ****** ******* ********** ********** **** ***** ** ********** Journal of ************** *************

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