Business Finance Report: Trend Ltd. and Working Capital Management

This business finance report analyzes the financial performance of Trend Ltd., a company manufacturing gym cloth and footwear. It begins by defining key concepts like profit, cash flow, working capital, receivables, inventories, and payables, explaining their interrelationships and impact on a company's financial results. The report then delves into the specifics of Trend Ltd.'s operations, highlighting the impact of operational management on financial outcomes. A key aspect of the report is the analysis of working capital management, with recommendations provided to improve cash flow. The report includes a monthly cash budget for the period of January to April 2021, identifying challenges and suggesting strategies for better cash management. The report explores the challenges faced by the company in managing cash and cash equivalents, and offers recommendations for improvement. The report covers various aspects of financial management, offering insights into how businesses can optimize their financial performance.