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plz shares mnemonics for f7 or any mind map , thanx
characteristics of over trading :
S sales growing too fast
A asset maintenance
L liquidity problems
E excessive inflation causing capital replacement problems
S sales focus on exclusion of other factorsU under capitalization
P profitable , but . total profit gross or/and net begins to diminisha company’s SALES may be UP but its cash can be seriously down . it might be over-trading
Measures that can be used to indicate over-trading :
G gross margin
I increase in bank overdraft
A asset turnover ratio
N net working capital size
T turnover of inventory through salesC current ratio
A acid test ratio
R reduction in liquidityT turnover of inventory in days
R receivable payment days
I increase in fixed asset %
P payment day
S sales revenue increase %GIANT CAR TRIPS
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