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The Yorkshire Crisp Company Ltd is a regional potato crisp manufacturer based in Rotherham, South Yorkshire - Edexcel - GCSE Business - Question 4 - 2018 - Paper 1
Question 4
The Yorkshire Crisp Company Ltd is a regional potato crisp manufacturer based in Rotherham, South Yorkshire. It packages its crisps in tubs. Rivals such as Walkers a... show full transcript
Worked Solution & Example Answer:The Yorkshire Crisp Company Ltd is a regional potato crisp manufacturer based in Rotherham, South Yorkshire - Edexcel - GCSE Business - Question 4 - 2018 - Paper 1
Step 1
Identify one method the Yorkshire Crisp Company could use to improve its cash flow.
Answer
One method the Yorkshire Crisp Company could use to improve its cash flow is to reduce its stocks of potatoes. By doing this, the company can free up cash that is currently tied up in inventory. This leads to improved liquidity, allowing the company to manage its expenses more effectively. Furthermore, a reduction in stock can also lower the risk of waste due to spoilage, which is crucial for maintaining financial health.