1. Develop a questionnaire and checklist that you

1. Develop a questionnaire and checklist that you would use for new clients to ensure you have collected all the necessary information regarding the business and their financial position

The primary theme of the paper is 1. Develop a questionnaire and checklist that you would use for new clients to ensure you have collected all the necessary information regarding the business and their financial position in which you are required to emphasize its aspects in detail. The cost of the paper starts from $89 and it has been purchased and rated 4.9 points on the scale of 5 points by the students. To gain deeper insights into the paper and achieve fresh information, kindly contact our support.

PFBPI - ONLINE ACTIVITY 1

Read the following information and provide the answers to the questions asked:

You work as a financial accountant who helps up and coming businesses expand. In your role you assist with advice on the financial options available to them and how to handle various key aspects of their business such as; working capital management, especially inventory, accounts receivable, loan structures and their legal obligations.

You have a new client, Mean Machines Pty Ltd who manufactures heavy haulage trucks. Some useful information about Mean Machine Pty Ltd follows.

• The average truck costs $235,000 to manufacture and takes 10 weeks to manufacture.
• Sale price of each truck is $434,000.
• Account payable terms are 30 days.
• Account receivable terms are 60 days.
• There is currently $423,000 of accounts receivable outstanding for more than 90 days.
• Mean Machines Pty Ltd is a family owned business.
• Current level of overdraft is $1m @ 17.5% interest per annum
• The company wishes to open an additional factory site in the next year and needs to raise $5m to fund this.
• The current factory loan is $800,000 @ 12.5% interest over 30 years.
• They wish to purchase 6 Mazda 2 cars @ $24,000 each in the next year for use in the business
• Net annual turnover is $3.25m
• Net asset worth is $7.5m
• They have 960 employees from a variety of cultural backgrounds

Requirements:

1. Develop a questionnaire and checklist that you would use for new clients to ensure you have collected all the necessary information regarding the business and their financial position.
2. Suggest options on how Mean Machines Pty Ltd should manage their inventory in order to smooth out cash flow.
3. Assess Mean Machines current factory loan. Would better loan options available to them? Provide suggestions and assess the interest savings from your suggestion.
4. Explain different ways the company can fund their expansion. Provide examples and discuss what you would recommend and why.
5. Identify legislation that the company would need to ensure they comply with? Give a summary and highlight key areas of importance.