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Working Capital Management on A Case of Dell

Technical Report · September 2020

DOI: 10.13140/RG.2.2.15283.50723

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THE DELL TALE

1
 Analysis
On
DELL Computer Company Ltd.

Prepared for
Shabnaz Amin Auditi
Associate Professor
Department of Finance
Faculty of Business Studies
University of Dhaka.

Prepared by
Group: 5
Section: B
Batch: 23rd
Department of Finance

A combined effort by:

Serial No. Name ID No. Remarks

1. Zain Uz Zaman 23-015
2. Shadman Shahriar Sakib 23-070
3. Partha Pratim Roy 23-140
4. Ananna Barua 23-152
5. Md. Saiful Islam 23-180

Date of Submission: 20th September, 2020

1
 Letter of Transmittal

20th September, 2020

Shabnaz Amin Auditi
Associate Professor
Department of Finance
Faculty of Business Studies
University of Dhaka.

Subject: Submission of a report on “Analysis on Dell Computer Company.”

Dear Madam

With great pleasure we submit the report on “Analysis on Dell Computer Company”. In this
report our main purpose is to relate the topics of various analysis of various working capital
issues with the real economic data of the company. We have put our best effort to make this
report a success.
However, we hope that this report could have been a better one. And this has been obviously
a great source of learning for us to conduct similar research studies in future.

We would like to express our sincere appreciation and gratitude to you for your help in the
preparation of this report.

Sincerely yours,

Shadman Shahriar Sakib

Roll: 23-070
On behalf of group no: 05
Department of Finance
Faculty of Business Studies
University of Dhaka.

3
 Table of Contents

Case Summary............................................................................................................................5

Analysis 1: Working Capital Policy for Competitive Advantage..............................................5

Analysis 2: Funding of 1996’s 52% Growth............................................................................10

Analysis 3: Internal Funding of Future Growth without Condition.........................................12

Analysis 4: Internal Funding of Future Growth with Condition..............................................15

Analysis 5: Required Working Capital and Its Management...................................................17

4
 Case Summary
Dell Computer Corporation was performing its computer business only in direct customer
channel with keeping a lower level of inventory in hand. But in the eve of 1990s, the CEO of
the firm changed its strategy and they moved to indirect customer channel also along with
direct channel to inflate its profit and market share. But due to some working capital issues, it
could not achieve its goal for a long period. At 1994 accounting year, it faced a loss and then
changed its policy again. And at 1995 and 1996 accounting year, they performed well with its
new strategy.

At the first portion of our analysis of Dell Company case, we tried to find out the company’s
working capital policy to get competitive advantage. Here, we took three distinguished
phrases to find the company’s working capital policies which drove competitive advantages.

At second part, we tried to find out how the firm financed its 52% growth in the year ended at
1996. We found that the firm used both internal and external sources to finance this growth.

At third portion of our analysis, we tried to show how the firm can finance its estimated cash
outflows internally at 1997 accounting year if it happens 50% sales growth in that year.

At fourth part, we analyzed whether it is possible for the firm to meet again the estimated
50% growth in the accounting year of 1997 through internal financing if a huge cash outflow
of debt and share repayment occurs. And we found, it is quite possible in numerically but
judgments prohibits to do that.

And finally, we estimated the net profit of the accounting year of 1997 through pro forma
income statement and tried to find the required working capital and their sources.

Analysis 1
Working Capital Policy for Competitive Advantage
The American computer tech giant “Dell” is one of the largest manufacturers and vendor of
computer parts and is placed third in the competition. The firm has undergone a remarkable
breakthrough since its inception. The rise and fall during all these years made the firm a
relentless, magnificent and a resilient competitor in the tech industry.

This portion of the report focuses on the working capital management approach and strategy
of Dell Inc. based on the case study. The research team thoroughly evaluated the working

5
capital management of the corporation and would like to discuss the details in following three
segments:

1984-1990

It was 1984 when Michael Dell, an undergrad student of University of Texas, dared to
establish a computer firm. at that time, the tech industry was booming and people were
getting more and more accustomed with PCs. In such crucial times, Michael Dell was able to
make his firm a successful endeavor through his magnificent management skills and sheer
determination. And the success of Dell Inc. was largely backed by the competitive advantage
that Mr. Dell was able to dig down by thoroughly analyzing the market.

[Link] Orders
over a Toll-Free
Telephone Line

[Link]-site [Link] Cost

Technical Distribution
Support Model

[Link]
Lower Inventory
Goods Directly to Level
Customers

Dell first emerged in the market by selling upgraded PCs directly to the businesses by mail
order. But within very short time, the firm was able to start receiving direct orders from the
customer over a toll-free telephone line. At that time, the telephone bill was regarded as a
huge expense by the customers. And being able to order something without bearing any
additional phone bill really attracted the customers and persuaded them to buy from dell.
This action proved really useful for Dell in a number of ways. First, the time lag to place an
order was reduced significantly resulting in abrupt order execution and collection. The
collection time of the firm was significantly lower than the industry average at that time. At
the same time, this decision granted a lucrative ground for Dell compared to its contenders,
enabling them higher exposure in the market. One more thing Dell confirmed that time. They
kept the product delivery as simple as possible, without involving additional middle parties.
This measure also proved favorable for Dell as none of the competitors were doing this for
their customers. And
6
due to direct shipping, the customers were able to receive their expected goods at almost 30%
less time. And this measure largely affected the Working Capital of Dell as the firm was able
to receive payments faster, compared to the contenders along with keeping the DSO really
small compared to the industry average. In addition, the payment to the middle parties in the
form of commission and sales charge was reduced significantly, adding extra volume to the
profit margin of Dell.

The level of inventory largely affects the performance and efficiency of Working Capital.
Dell had a policy of keeping only 10% to 20% of finished goods as inventory from the very
early days of business whereas the finished goods inventory of the industry drivers ranged
from 50% to 70%. Being able to keep the inventory level significantly low allowed Dell to
look for other lucrative investment opportunities, rather than occupying the fund in the
inventory. And reduced inventory encouraged additional investment opportunity and such
opportunity to additional profit for the firm. one more thing to notice, the major drivers of the
industry used to have a significant investment in inventory but Dell hadn’t any such
requirements. Subsequently, the cost of capital of the firm was dramatically low which was a
significant competitive advantage against the contenders.

During ‘90s, although the computer technology was gaining significant attention, people
hardly had knowledge about the technical aspect of it. Then Dell adopted a strategy to render
On-site Technical Support to their customers. In addition to that, Dell had a distribution
model where the manufacturing process used to commence as soon as the customer confirms
the order. Here, the cost efficiency of this model was justified by the fact that the firm didn’t
need to have any finished goods inventory (Or very little), thus resulting in lower investment
need as well as keeping the production line centralized by avoiding appointing any
unnecessary personnel. This strategy ensured significant cost saving for the firm by lowering
inventory need, keeping salary expense low and ensuring lower ‘dismantling expense’ by
rendering necessary technical support at the onset.

Working Capital Policy

If we evaluate the working capital policy of Dell in terms of investment in current asset, we
can clearly entail that the investment in current asset was significantly high, resulting in low
risk exposure, followed by low profit margin. So, from this point of view, firm followed a
conservative policy. Again, in terms of financing of current asset, it’s seen that the short-term
debt amount of the firm is remarkably huge than the long-term debt. It indicates the WC

7
policy

8
to be aggressive. In fine, considering both the perspective, the working capital policy of Dell
during 1984-1990 period was moderate.

1991-1993

During ‘90s the firm captured only 1% of the market share of the whole PC market. As the
market was fragmented in nature, Michael Dell proposed and extensive growth plan, instead
of consolidation or merger. In order to support this objective, the firm had to increase the
sales volume and ensure a double-digit growth performance. Accordingly, the firm broke its
“Direct Only” business model and started selling PCs through CompUSA.

During this period, the firm expanded its distribution channel massively, which was
centralized earlier, and its indirect distribution channel keep on including more and more
mass-market retailers. Because of this decision, the amount of sales enhanced notably
resulting in huge amount of accounts receivable. And this decision made the firm adopt an
aggressive policy to ensure growth, for which the firm was left with a very small amount of
cash and marketable securities at hand. Subsequently, this prolonged accrues made the cash
inflow less repetitive, giving rise to the default risk of the firm. Following that, the firm had
to witness a loss of $76 million which mainly occurred as a result of cash tie up in “sell off of
excess inventory” and “cost of scrapping notebook computer line”. Had the firm sufficient
cash at hand, such extreme situation would not have occurred. And thus, aggressive policy
turned ineffective for the firm and proved fatal.

Working Capital Policy

During this period, from ‘investment in current asset perspective’, the firm followed an
aggressive policy as the amount of cash and equivalent investment was considerably low.
And because of data insufficiency, the other perspective cannot be evaluated and overall, the
firm is perceived to follow aggressive policy during that period.

1994-1996

After the turmoil in ’93, the firm planned on rearranging the management policy so as to
cover the losses along with recapturing the market share. At the onset, Dell had a number of
seasoned managers in place to secure its standing with assistance from the experienced
individuals. Through adept knowledge, wisdom and experience, they were able to assist Dell
in developing in market centric, more customer-friendly marketing approach. This strategy
worked in favor of the firm and accordingly the firm was able to develop proper and exact
9
estimation, taste,

10
need and trend of the market. And this strategy also exclusively supported Dell’s liquidity,
profitability and growth focus. Customer-centric strategy enabled them to have real-time data
about the market, regulating the amount of fund stuck in inventory. At the same time, such
strategy reduced the delivery time notably, resulting in reduced DSO and CCC.

Again, the policy of keeping the finished good inventory low came handy for Dell when Intel
Corporation developed their updated microprocessor chip “Pentium” and declared their
previous version flawed. Other industry drivers were dealing with dismantling their finished
inventories, Dell was offering their customers updated products at the previous price. This
allowed Dell to capture larger portion of the market, resulting in additional cash inflow,
reduced accrues and lower number of distributors to keep DPO high.

Lastly, Dell managed to be the direct marketer of Microsoft product which enabled the firm
to render the latest technology to its clients within the least possible time. Again, such
initiative enabled Dell to manage their short-term funding with comparatively lower amount
of cash as well as significant reduction in the cost of inventory. Lower cost of inventory again
led to increased amount of sales, sales to cash inflow and increased working capital fund for
the succeeding periods.

[Link] [Link]
on of Finished
Seasoned Goods
Manager Inventory

[Link]
[Link]
Centric
Marketer
Markeitng

Working Capital Policy

In terms of investment in current asset, it can be clearly entailed that the investment of Dell in
current asset was significantly high, resulting in low risk exposure, followed by low profit
margin. So, from this point of view, firm followed a conservative policy. Again, in terms of
financing of current asset, it’s seen that the short-term financing of the firm is remarkably
huge than the long-term. It indicates the WC policy to be aggressive. In fine, considering both
the perspective, the working capital policy of Dell during 1994-1996 period was moderate.

11
Synopsis

Dell Inc. used to follow a conservative working capital management approach at the very
onset of its establishment. The level of liquidity was really high followed by low risk and
profitability. But during mid ‘90s, the firm planned on targeting larger market share and
subsequently adopted aggressive approach. But it turned against the organization and brough
about a significant loss for the firm. but after the unpleasant occurrence, the firm reshaped its
management approach and developed moderate working capital management approach. And
this time the firm was able to ensure higher liquidity, moderate profitability and moderate
risk exposure.

Analysis 2
Funding of 1996’s 52% Growth
The prime discussion of this segment is to identify the approach and methodology of funding
52% sales growth during 1996 by Dell Inc. Before moving towards detailed analysis, the
analysts planned on finding out some pieces of missing information which are as follows:

Purchase in ‘96 $2664 Million

CCC 41.25 Days
Turnover 8.73 Times
Per Turnover Purchase $305.25 Million

The amount of purchase was calculated by using the COGS formula. This CCC is the average
of cash conversion during 1996. And by combining the total turnover and amount of
purchase, per turnover purchase was identified.

If the external sources of funding are avoided, the firm is left with only internal source to
fund its payment obligations. Here, the internal sources of fund and the sources of cash
outflows are listed as follows:

12
 Internal Sources of Fund (Million $) Cash Outflows (Million $)
Retained Earnings 311 Preferred Stock Paid 114
Inventory 293 Current Liabilities 752
Acc. Receivables 538 PPE Purchase 62
Cash 43 Investment in Short Term 107
Purchase 305.25
1185 1340.25

All the internal sources combined generate cash inflow of $1185 million for Dell and the
outflows altogether stands at $1340.25 million. At this point, the internal sources of fund fail
to meet the required outflows during 1996 and a deficit of $155.25 million prevails. So, it can
be easily said that, 52% growth in sales cannot be backed only by the internal source of the
organization. The firm must have to look for its external sources in order to meet the deficit.

If the external sources are taken into account, the inflow structure will look like:

Sources of Fund (Million $) Cash Outflows (Million $)

Retained Earnings 311 Preferred Stock Paid 114
Inventory 293 Current Liabilities 752
Acc. Receivables 538 PPE Purchase 62
Cash 43 Investment in Short Term 107
Acc. Payable 63 Purchase 305.25
Common Stock 188
1436 1340.25
excess 95.75
Now, the total amount of inflow generated combining the internal and external sources is
$1436 million and the outflow is still $1340.25 million. At this point, the firm can avail an
additional
$95.75 million surplus fund. This amount can be invested again in any short maturity
securities or the firm can hold it in accounts for any contingencies. But as the firm is seen to
follow the moderate approach of working capital management, this surplus fund will come
handy for the organization.

To conclude, the stated growth in sales during 1996 will result in additional COGS,
increasing the amount of cash outflows for the period. If only internal sources are perceived,
the firm will be left with $155.25 million deficit. So, because of the shortage of internal
financing, the firm must have to incorporate the external sources in order to ensure the
constant flow of fund within the organization. And when the external sources are taken
into account, the firm can avail
13
 additional $95.75 million surplus after paying off the preferred stock, meeting current
liabilities, buying PPE, investing in short-term securities and purchase of inventories.

Analysis 3
Internal Funding of Future Growth without Condition
If the sales of Dell grow 50% in 1997, then the new sales amount (millions of dollars) will be:

Year 1997e 1996 1995 1994 1993 1992

Sales $7944 $5296 $3475 $2873 $2014 $890

So, here new sales amount of 1997 will be $7944 million.

Now, after taking the average percentage of cost of goods sold of sales for year 1992 to 1996,
the average percentage is applied on the expected sales of 1997. So, the cost of goods sold
(millions of dollar) will be:

Year 1997e 1996 1995 1994 1993 1992

COGS 6189.403 4229 2737 2440 1565 608
Rate 0.779129 0.798527 0.787625899 0.849286 0.777061 0.683146
Mean rate 0.779129239

Now, to forecast ending inventory of year 1997, regression analysis is done with last three
years data.

Coefficients Standard t Stat P-value Lower Upper Lower Upper

Error 95% 95% 95.0% 95.0%
Intercept 105 39.2874 2.672612 0.227935 -394.1 604.1938 -394.1 604.1938
X 104.5 18.18653 5.74601 0.109695 -126.5 335.5818 -126.5 335.5818
Variable

Ending Inventory = 105 + 104.5*year

= 105 + 104.5*4

14
 = $523 millions

So, the purchase amount of year 1997 will be:

Purchase (1997) = COGS + Ending inventory – Beginning Inventory

= 6189.03 + 523 - 429

= $6283.403 million

To find out purchase per turnover, the average Cash Conversion Cycle (CCC) of total 8
quarters of year 1995 & 1996 is taken. Because, we assume that the company mayn’t change
its credit policy and payment policy also. So, the average CCC of 1995 & 1996 is 39.88 days
or 40(approx.) days. So yearly turnover will be (360/40) 9 times.

Now, purchase per turnover = 6283/9

= $698.156 millions

We are assuming that there will be an investment of property, plant & equipment. So, to find
out PPE of year 1997, regression analysis is done with the data of last 3 years.

Coefficients Standard t Stat P-value Lower Upper Lower Upper

Error 95% 95% 95.0% 95.0%
Intercept 35.66667 19.95551 1.78731 0.324745 -217.8 289.2254 -217.8 289.2254
X 46 9.237604 4.979646 0.126166 -71.37 163.3749 -71.37 163.3749
Variable

So, PPE (1997) = 35.66667 + 46 * year

= 35.66667 + 46 * 4

= $219.66667 millions

Now, investment in PPE = PPE of 1997 – PPE of 1996

= 219.67 – 179

= $40.67 millions

So. The investment of PPE in 1997 is $40.67 million or $4.52(40.67/9) million per turnover.

So, the fund needed (millions of dollars) for a turnover in 1997 is:

15
 Purchase 698.156
Accounts Payable 466
Accrued & other liabilities 473
Investment in PPE 4.52
Total $1641.676

Here, we assume that accounts payable and accrued liabilities should be paid within the credit
terms given to the company by the suppliers and the commitments that the company gave to
the related parties. And this obligation of the amount we showed here may fall within the first
turnover.

As Dell has to fund its sales growth internally, then the fund available (millions of dollars) to
meet up the expenses of a turnover is:

Retained Earnings 570

Cash* 30
Accounts Receivable 726
Inventory 429
Total $1755
*Note: Assuming that, Dell will use $30 millions in this turnover & keep $25 millions in hand.

As, Days Sales Outstanding and Days inventory Outstanding fall in cash conversion cycle,
these inventory and accounts receivable will turn into cash within this cash conversion cycle.
That’s why we took these two items as cash inflows.

So, after meeting up the expenses, the fund in hand available after a turnover will

be; Fund in hand (after a turnover) = Cash inflow – cash outflow + Cash in hand

= 1755 – 1641.676 + 25

= $138.324 millions

So, without any external sources of fund, the firm easily manage its next year’s growth of 50%.

16
Use of Available Fund:

 Investment for next turnover purchase although there will be collection of funds of
this turnovers’ account receivables.
 Investment in short term securities.
 To meet sudden financial crisis.

Analysis 4
Internal Funding of Future Growth with Condition
At question number 3, it was found that Dell Company can finance their next year’s 50%
growth through only internal financing.

But they are facing a little bit different scenario which is repaying the long term debt and
repurchasing the common share. And we are to find out whether they will be able to finance
their 50% growth in 1997 internally after meeting these two huge cash outflows.

Firstly, at the beginning of 1997, the amount of common stock of Dell Company was about
430 million USD and the amount of preferred stock was 6 million USD. At 1997, the
company will convert its 1,190,000 preferred shares to common shares. We assume that this
1,190,000 preferred shares cover its whole amount of preferred share and the company wants
to convert all the preferred shares to the common shares. And the conversion value will be
same as the price of the preferred stocks. So, now the total amount of the common shares of
the company will be 436 million USD.

Secondly, the condition is Dell Company has to pay 500 million USD to repay its long term
debt and to repurchase a portion of its common stocks. That means 113 million USD of long
term debt will be paid totally and the rest money, (500-113) or 387 million USD will be used
to repurchase the common stocks of the company.

Now adjusting this new information, the total cash outflow for the first turnover will be:

1. Common stock repurchase: 387 million USD

2. Long term debt repayment: 113 million USD
3. Accounts Payable payment: 466 million USD
4. Accrued expenses payment: 473 million USD
5. Investment in PPE: 4.52 million USD
6. And the required purchase at first turnover: 698.16 million USD
So, total obligation to pay at the first turnover will be 2141.67 million USD for Dell Company.

17
After analyzing their probable outflows, we analyzed the probable cash situation for the first
turnover of 1997 of the company. Here we also take the same turnover assumptions as we
took at question number 3.

Again, analyzing their balance sheet of 19976, we found some probable cash inflows for the
first turnover of Dell Company. They are:

1. Retained earnings of 1996: 570 million USD

2. *Cash: 30 million USD
3. Accounts Receivable: 726 million USD
4. Inventory: 429 million USD
Combining all the estimated cash inflows we found a total of 1755 million USD of cash
inflows for the first turnover of 1997 of the company.

So, from the both sources and uses analysis we found that after meeting all terms the cash
inflow will be 1755 million USD and cash outflow will be 2141.67 million USD. This will
leave a deficit of 386.67 million USD.

Now, this deficit can be addressed by liquidating the short term investments that the firm did
over the last few years. So, out of 591 million USD amount of short term investment, the
company has to liquidate 386.67 million USD amount of short term investment to meet its
growth in 1997 at first turnover. And at subsequent turnover, it can meet its cash outflows by
the inflows from sales and account receivables.

That means the company can meet its 50% growth in 1997 by liquidating its short term
investments which says the company doesn’t need any short term and long term external
financing like purchasing on credit or taking loans.

But with just this analysis, it is not easy to say whether it is possible to continue without
taking any sort of external financing. Because, this restriction will bring a very aggressive
situation for the company. The extreme situations that might be faced by the company are:

 The net liquid balance will fall to 229.33 million USD from 646 million USD
because of this extreme cash outflow and no external financing. As a result, if
there comes any unwanted cash outflow, the firm mayn’t meet this. This
brings a risky situation for the firm.
 Because of no credit purchase, cash conversion cycle will go high which will
interrogate the disbursement policy and efficiency of the company
 Because of liquidating a significant portion of short term investments, the firm
will gain lower interest income now.

18
  As there is no credit purchase, the firm may try to strict its credit granting
policy also to get the money from customers as early as possible which may
create a bad impact on customers mind and may switch or be unable to pay
money in time.
So, after analyzing these qualitative pieces of information, now Dell Company must think again
whether they should do it only with their internal financing. Because in this era of uncertainty
and macro variables, this will be highly aggressive policy for the firm to go with only its
short term funding. Here the company should take some external sources as cushion of risks.
They should purchase some inventory on credit as well as they should keep a line of credit
with a bank to get fund if required at any unwanted situation.

So finally, our numeric analysis says that it is quite possible for the firm to go with only short
term sources of funds to meet its 50% growth in 1997. But our qualitative analysis says, it
will be highly risky for the firm if they don’t use any external funding after meeting those
huge cash outflows.

Analysis 5
Required Working Capital and Its Management
Required W.C= Estimated COGS * (Operating Cycle/365) + Desired Cash Balance

= $6190 * (82/365) + $335.22 million

= ($6190 * 0.2247) + $335.22 million

= $1726.11 million

Here, we assumed- Desired Cash Balance= Net Profit+ Depreciation. Here is how we forecasted
the 1997 Income statement to get Net Profit.

Profit & Loss Statement of Dell Computer Corporation (Millions of Dollars)

Fiscal Year 1997

Sales $7,944
Cost of Sales 6,190
Gross Margin 1,754
Operating Expenses $1,319.96

Operating Income $434.08

Financing & Other Income 7

Income Taxes 127.83
Net Profit 313.25

19
Then, to determine the depreciation, we first calculated the PPE of 1997 by doing a
regression analysis with the PPEs 1994, 1995 & 1996 that was shown earlier.

Through this, we got the PPE of 1997 which was $219.67 million. Then we assumed the
depreciation rate 10% & got depreciation (219.67 * 10%) $21.967 million. So, the desired
cash balance was ($313.25+$21.967) or $335.22 million.

To determine the cost of goods sold & operating expense, firstly we calculated the COGS &
OPEX (% to sales) and then determined their average to forecast the cost of sales and
operating expenses of 1997.

COGS ( % of sales) OPEX (% of sales)

1992 0.6831 0.2416
1993 0.7771 0.1539
1994 0.8496 0.1643
19956 0.7876 0.1407
1996 0.7985 0.1303
AVG 0.7792 0.1662

We assumed that like the previous year (1996), the debt will remain the same and short term
investment would increase a bit. For this, we assumed that financing income would increase a
bit but expense will remain the same resulting in increase of net financing income.

We calculated the tax rate with the formula (Tax amount of 1996/EBIT of 1996).

We all know that, Operating Cycle = Days Sales of Inventory (DSI) + Days Sales
Outstanding (DSO)

To get DSI & DSO we took the DSIs & DSOs of Dell from Q1 of 95 to Q4 of 96 and
averaged it.

DSI DSO
Q195 32 53
Q295 35 49
Q395 35 50

20
 Q495 32 47
Q196 34 47
Q296 36 50
Q396 37 49
Q496 31 42
average 34 48
Operating Cycle 34+48 82 days

So this is how we got the require working capital.

Now, we need to compare it with the current working capital.

To get the current working capital, we did the following calculation-

Current Working Capital of Dell Computer Corporation (Millions of Dollars)

Year 1996
Current Assets (CA) 1957
Current Liability (CL) 939
Current WC (CA-CL) 1018

So Dell Computer Corporation need ($1726.11- $1018) or $708.11 million dollars more to
meet the required working capital money. Firm can manage it through lots of sources. They
can use spontaneous sources like notes payables, bill payables, trade credit etc. They can use
short term sources like tax & dividend provision or Bank overdraft, bill discounting etc. They
can long term sources to collect this huge amount of money. They can use long term internal
sources like retained earnings, depreciation provision or external sources like share capital,
long term loan etc. They can collect this money through all the aforementioned sources.

21

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