[amp_mcq option1=”traditional method of lending” option2=”turnover method” option3=”cash budget method” option4=”None of the above” correct=”option3″]<\/p>\n
The correct answer is: C. cash budget method<\/strong><\/p>\n The cash budget method is a financial planning tool that helps businesses forecast their future cash flows. It is a detailed report that shows how much cash a business expects to receive and spend over a specific period of time, usually a month or quarter. The cash budget method is used to assess the working capital requirement of a sugar mill by estimating the expected cash inflows and outflows over a period of time. The difference between the expected cash inflows and outflows is the net cash flow. The net cash flow is then used to determine the amount of working capital that the sugar mill needs to operate.<\/p>\n The traditional method of lending is a lending method that is based on the borrower’s creditworthiness. The lender will assess the borrower’s credit score, debt-to-income ratio, and other factors to determine the amount of money that they are willing to lend. The traditional method of lending is not suitable for assessing the working capital requirement of a sugar mill because it does not take into account the specific cash flow needs of the business.<\/p>\n The turnover method is a financial analysis method that is used to measure the efficiency of a business’s operations. The turnover method is calculated by dividing the business’s sales by its average inventory. The turnover method is not suitable for assessing the working capital requirement of a sugar mill because it does not take into account the specific cash flow needs of the business.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”traditional method of lending” option2=”turnover method” option3=”cash budget method” option4=”None of the above” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-47291","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n