Go to the Extel data and choose two companies that you know who manufacture a product, and two retail companies. Find the level of cash, the level of current assets and the level of shareholder s equity for each of the companies, and fill them in in the appropriate columns in the table below. To help us compare the data from the different sized companies we therefore need to manipulate it a little. This will help us to see what proportion of all the money they have tied up is tied up in cash. This process is known as cash flow forecasting and there is an explanation of it elsewhere in the FT materials.
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