Optimization of the company's cash flow

and duration of the necessary transitional capital. Indeed, the fixed part of the circulating capital must be financed
by stable resources; and the variable part requires funding for its duration.
2 – DEFINITION OF THE BU1 AND THE BU2:
Since the existence of the company on the market, they used to be distributer of one telecommunication operator
that is INWI or WANA CORPORATE earlier. Since then, all type of transaction and commercial businesses were related
to this only supplier for two reasons, for being the other supplier full from having new distributers, and two, the
contract that has been signed by the two part was clear in the fact that any distributer of WANA CO. has no right to
add an extra supplier to his pocket especially the competition.
From that time until now, IWACO based all their investments and profits on the BU1. But then when the activity
started to flow up a bit, and like any other company, they decided to add an extra investor or producer to which
they’ll play the same role of being a distributer that is BU2. These fact gather the definition and analysis of the
IWACO’s nature in the telecommunication market. To conserve the confidentiality of the company to its inside
information, the BU1 and BU1 will be used as the two nick names given to the two suppliers.
SECTION 2: EVALUATION OF THE CASH TREASURY’S SITUATION OF THE FIRM:
A. ARBITRATION OF THE FINANCIAL POSITION OF THE COMPANY
The company’s investment policy is related to the legal conditions that relate the whole firm to the suppliers. The
fact behind is that each supplier avoids competition through though the contracted distributer, for that, the decisions
related to the investment part are most often tight or limited to small activities or even more, activities presented in
the market under the suppliers’ image.
The existence of INWI as an official supplier and provider was for quite a long time. The only supplier, and the over
than 80% of the company’s turnover, that made the firm’s life and surviving key of the market depends on that
supplier. For a different fact and actions, this decision of keeping it the only one was on the best regard of the
company’s financial return and on the other side; reputation on the market as the third operator.
The company’s financial situation depends on the sales that the company realizes from selling the INWI’s products,
either the High-Tech. products or the telecommunication service. In fact, financial situation is represented as the
cash treasury of the company that is managed through the financial direction or the company’s Treasurer. The
following chart will represent the form and definition of the Cash flows inside the firm.
Table 19: Simulated Treasury’s Cash plan 2016
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