Business Studies · May / June 2021 · Paper 12 · Question 2
7115
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NPX is an online retail business. All orders are sent directly to customers from its warehouse. NPX employs 60 full-time workers. The Operations Manager is analysing NPX’s cash-flow forecast. An extract is shown in Table 2.1. To improve productivity, the manager plans to introduce new technology that can select and pack all the items for each order. This will make 35 workers redundant. The technology will cost $40000. The manager is considering using either internal sources or external sources to finance this technology. Table 2.1 NPX’s cash-flow forecast for the period July – September 2021 ($000) July August September Cash inflows 100 120 140 Cash outflows 90 90 110 Net cash flow 10 30 30 Opening balance 5 15 45 Closing balance 15 45 75
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2(a)[2]
2(b)[2]
2(c)[4]
2(d)[6]
2(e)[6]
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