sample
Haven't found the Essay You Want?
For Only $12.90/page

Cash Essay Topics & Paper Examples

Management of the Cash Position

Not only do these managers often have difficulty in comprehending sophisticated forecasting techniques, but the cash flows of their companies are usually dependent upon fewer customers and a smaller number of product lines than those of their larger competitors. Thus the cash flow pattern of the small firm is typically too unstable over time and the available data describing it too limited for reliable forecasting. The small business is subject to still other constraints, apart from those applicable to all firms, which tend to restrict the use of even relatively simple cash management techniques. Small firms, for example, are normally unable to afford the division of talent available to larger companies in the form of highly educated financial managers. Many…

Internal Control for Outflows: Cash Disbursements and Investments

Cash Disbursements · Budgeting and Supervision The first step towards any business activity is planning and budgeting. The expenditure that is likely to be incurred for each activity or each department must be estimated and included in a budget for that activity/department. Not only the amount but also the type of expenditure that is applicable to the activity ought to be defined. Once the budget has been formulated and approved by the Board, it must be ensured that the disbursements are used only for those purposes that are defined in the budget. Any expenses outside the budget must require special approval. · Proper Authorization The person or persons that are entitled to make authorizations for cash disbursements must be determined…

The capital budgeting decision

How do we determine if cash flows are relevant to the capital budgeting decision? Any cash flows that are not incremental are not useful, and also are not used for decision in the capital budgeting. All investments are expected to earn a return that can be evaluated by comparing the future cash outflows and cash inflows. When dealing with capital budgeting decisions, the concept of incremental cash flow is central to the firm’s analysis. The incremental cash flows determine the difference between a firm’s future cash flows with a project and those without a project. In the context of capital budgeting, what is an opportunity cost? Opportunity cost is defined as the benefit surrendered from a specific decision. When a…

The opening balance

In this cash forecast I will analyse where the Steve’s business can improve on whether they are making a profit or not. Also I need to identify where they have regular inflow and outflows and irregular inflow and outflows. I will also comment on how the fresh business can maintain more regular numbers. January and February In January the sales is £17,000 it increases by £2,000 to £19,000.the total income in January was £32,000 it decreases by £13,000 to £19,000 because the loan was one off income. It an irregular cash inflow which only happened in January. These profit can be use to expand or give the staff bigger salaries for there hard work. A regular cash inflow is good…

Home Depot Inc. Case Analysis

Home Depot was founded in 1978 in Atlanta, Georgia. The company went public in 1981. Their stocks were first traded in OTC (Over-The Counter) and were subsequently listed on the New York Stock Exchange in 1984. The Chain stores were warehouses that had huge amounts of building materials and home improvement products targeting customers that were individual home owners and small contractors. Their aim was to bring the warehouse retailing concept to the home center industry. This was considered to be the first successful company in Do-It-Yourself (DIY) segment and was famous for providing high quality products with low prices. Beside providing best quality products, the company’s distinctive feature was that they provided knowledgeable customer services. All sales personnel were…

Final Project: Business Portfolio Presentation

The following is a presentation of information about “Nick’s Mexican Restaurant”. I will be going into detail about certain things that matter within a business like the organization, potential legal or ethical issues, business culture, types of motivation, human resource management, technology, and operations and materials management. Introduction to Mexican FoodAlthough the restaurant will be mainly Mexican, the menu will also consist of several American dishes and sea food dishes like Caldo de Marisco (seafood soup) and other favorites. Business OrganizationNick’s Mexican Restaurant will be privately owned. Since it is I will be fully responsible for all debts and obligations related my business. First at hand will be the staff, I need to have enough staff to get my business…

Operations Management at HOLLY FARM

1. Introduction This consultancy report is prepared for Holly Farm in order to improve its future business. In the second part of this report; ‘Evaluation of Current Operations and Gillian’s Business Strategy’ and ‘Conclusion’, Holly Farm’s operations will be critically evaluated in the aspect of current and future potential capacity constraints and any other operational problems. Also, I will discuss the feasibility of Gillian Giles’ strategy for the business there. In the last part; ‘Recommendations and Action Plan’, I will show a recommended alternative strategy for the business and several solutions for alleviating its constraints. 2. Evaluation of Current Operations and Gillian’s Business Strategy 2.1 Gillian’s Aims and Objectives 2.1.1 Sales Forecast According to Gillian’s forecasts, while there will be…

Corporation and Consolidated Cash Flow

ASC 830-230-55-1: This reference shows how to format and account for cash flows when a company has subsidiaries operating in foreign countries. It gives an example of a consolidated cash flow statement from a US based company and its two subsidiary companies. The reference explains how excess cash should be disclosed. A majority of the reference deals with the local currency and how it should be shown with the parent company, in this case a US company based on the dollar. So for both foreign companies it needs to be formatted with both local and US. b) ASC 926-330-35-1: This references how an entity can evaluate their inventory at the end of a period. Manly to do with products help…

Net present value

This essay will discuss the net present value (NPV), payback period (PBP) and internal rate of return (IRR) approaches for a project evaluation. It is often said that NPV is the best approach investment appraisal, which I why I will compare the strengths and weaknesses of NPV as well as the two others to se if the statement is actually true. Introduction To start of, the essay will attempt to explain the theoretical rationale of the net present value approach to investment appraisal as well as its strengths and weaknesses. From there, introduce the payback period method and then internal rate of return approach, as well as to consider their strengths and weaknesses. After outlining and explaining the three different…

Berkshire Threaded Fasteners Case

Berkshire Threaded FastenersBerkshire Threaded Fasteners Company has recently lost their president, John Magers. The resulting appointment of his inexperienced son Joe Magers has lead to the company’s loss of confidence. Brandon Cook is the recently appointed general manger who was hired to turn the company around after a loss of $70,000 in a good business year. As a member of an outside consulting firm I have been called in to give advice on the problems the company is facing. The time period has been updated to the present times. Manufacturing ProcessSee Appendix A for the detailed manufacturing process. In short, fasteners begin as wires, rods and bars which are then cut to length, headed and finally threaded. What should be…

Analyse The Cash Flow And Highlight

Analyse the cash flow and highlight any problems that are evident such as a shortage of cash and any other cash flow problems his business might experience. (M1) In P3, a cash flow forecast for John Adams was created. A cash flow forecast is a simple statement showing opening balance, cash in, cash out and closing balance. Cash flow forecast are usually compiled on a month by month basis, for up to twelve months ahead. The exact contents of an individual firm’s cash flow forecast will depend on the nature of its cash receipts and expenditure. However the basis structure for a cash flow forecast shows, the opening balance; which is the balance from the previous year, also known as…

The Investment Detective

The essence of capital budgeting and resource allocation is a search for good investments in which to place the firm’s capital. The process can be simple when viewed in purely mechanical terms, but a number of subtle issues can obscure the best investment choices. The capital-budgeting analyst is necessarily, therefore, a detective who must winnow good evidence from bad. Much of the challenge is knowing what quantitative analysis to generate in the first place. Suppose you are a new capital-budgeting analyst for a company considering investments in the eight projects listed in Exhibit 1. The chief financial officer of your company has asked you to rank the projects and recommend the “four best” that the company should accept. In this…

Ocean Carriers

Iron ore and coal imports will most probably decrease the upcoming year With the increasing supply of vessels should result in a market surplus By creating this surplus, prices will be driven down, since we will have limited demand and suppliers competing Average daily rates, based on historical numbers, have a direct relationship with the number of shipments. Only Accept the project if we sell after 25 years in a tax free environment Reject all of the following; sell after 15 years in both a tax and tax free environment, also after 25 years with a tax environment The longer the wait to sell; the better How Long Should Vessels Operate? The company’s current policy is to not operate ships…

GR Hotels

Introduction. The report was prepared for GR Hotels Board of Directors review. It examines current opportunities to increase profitability. Several options were examined and the most plausible solution proposed – Upgrade to upscale both hotels. This measure will increase long term profits and improve position in the core business. GR Hotels current mission and vision : MISSION: Clean Comfortable rooms(what), good quality service(how) to business and pleasure travellers(who) in Toronto and Montreal (where) at competitive prices ( how). VISION: GR Hotels are hotels of choice for travellers in Canadian cities. CURRENT SITUATION: GR Hotels financial situation has been stable for the last 3 years. We have improved our profitability, our liquidity remained stable and ability to pay our debt improved….

New Heritage Doll Company

1. Describe and compare the business rationales for each of the two project proposals under consideration. Which do you feel is the more compelling? Project 1: Match My Doll Clothing Line Expansion Expand the successful Match My Doll Clothing Line to include matching all-season clothing for tween girls and their dolls. Pros: Current popularity will enable company to maintain premium prices. Company could take advantage of off-peak discounts offered by some suppliers and contract manufacturers. Would help reduce the seasonality in New Heritage’s sales and earnings. Project poses moderate risk – about the same as the production division’s existing business as a whole. Cons: Company has to exploit the opportunity without delay to be able to exploit the current popularity…

Valuation of AirThread Connections

Given the background of ACC and AirThread, do you think the acquisition is a good idea? Briefly explain your answer. Yes. First, American Cable Communication (ACC) and AirThread could help each other compete in the industry that was moving more and more bundled service offerings. Second, the acquisition could help both companies expand into the business market. Third, ACC was in a unique position to add value to AirThread’s operations because the acquisition could save AirThread more than 20% in backhaul costs. The reasons above make us believe that the synergy is positive and the acquisition is a good idea. Based on the projected cash flow information provided in the case, what is the stand- alone value of AirThread? Show…

Capital investment

Capital investment:regardless of whether they involve a tangible or intangiable asset. The incestment creates wealth if the discounted value of the future cash flow exceeds the up front cost. The problem is what to discount- stick to these rules: 1. Only cash flow is relevant. Net present value depends on future cash flows it’s the difference between cash received and cash paid out. Cash should be recorded only when they occur and not when work is undertaken or a liability is incurred. Ex: taxes should be discounted from their actual payment date. 2. Estimate cash flows on an incremental basis. The value of a project depends on all the additional cash flows that follow from project acceptance. Some things to…

The Capital Structure DecisionCase Study Solution

1.Assume Hutchison Whampoa will require US$1 billion of financing in 1996. Assumethat equity can be raised at $48.80 a share and that a long-term debt issue will carry aninterest rate of HIBOR plus 70 basis points. How would an equity or debt issue impactHutchison’s financial position and performance? Hutchison Whampoa Limited (HWL) had multiple major long-term projects that would requiresubstantial funding in the future. Previously, HWL would finance these projects with cash on hand,internal cash generation and short to medium term bank financing. Because these projects werelong-term, the previous way of funding these projects would not be feasible. HWL would have toguarantee that their spending would not dry up and halt the project. The amount that was estimatedto be used…

Midterm case instructions: bake me a cake

On January 14, 2012, Amy Bourgon, sole proprietor of Bake Me A Cake (BMAC), set out to make some decisions regarding the company’s future strategy. BMAC had grown and Bourgon was considering a move because she was unsure of how much more growth the current space could accommodate and wondered whether it was time to take the business to the next level. Bourgon needed to decide whether to renovate her family’s home or to lease a commercial location for the business. Also, because Bourgon wanted to improve BMAC’s profitability, she was considering increasing cupcake prices; and she also wondered how BMAC should best advertise for fiscal 2012. Bourgon decided she would first analyze the company’s three-year financial performance and then…

Fonderia di Torino, S. p. A Case Study

In late 2000, Francesca Cerini, managing director of Fonderia di Torino, is contemplating purchasing a new automated molding machine. Fonderia di Torino is a company that specialized in the production of precision metal castings for use in products like automotive, aerospace, and construction equipment. The company, located in Italy, is known for the quality and craftsmanship of its work. Through this reputation, Fonderia di Torino has been able to secure deals with companies like BMW, Ferrari, and Peugeot. Cerini needs to decide if the new machine, “The Vulcan Mold-Maker” is worth replacing his current machines. 1) To decide whether to purchase the machine or not, Cerini must compute the net present value of both products. In order to start, he…

Finance Textbook

Growth rate: Your finance textbook sold 53,250 copies in its first year. The publishing company expects the sales to grow at a rate of 20 percent each year for the next three years and by 10 percent in the fourth year. Calculate the total number of copies that the publisher expects to sell in years 3 and 4. Draw a time line to show the sales level for each of the next four years. 1) 53250 x 1.20 = 2) 1st Year = 63900 x 1.20 = 3) 2nd year = 76680 x 1.20 = 4) 3rd year = 92016 5) 4th year = 92016 x 1.10 = 101218 Problem 5.21 Multiple compounding periods: Find the present value of $3,500…

Should Nucor Adopt the CSP Process?

Cash Flow Analysis Cash flow analysis on Exhibit 1 represents net cash flow calculation using the base assumption. According to this calculation, Nucor would have net present value of $(11.99) million which is a negative value. This negative value on NPV indicates potential unprofitable consequences after implementing SMS’s compact strip production (CSP); therefore, Nucor should not invest in this new technology. Scenario Analysis Instead of using the given assumptions, I have set two alternatives for assumption to see how the results are different. While everything being constant, the first scenario (Exhibit 2) assumes the growth rate of price of steel be 7.34% rather than 6.34%. I assumed that the demand of steel may increase if technology keeps improving and the…

M1a3 livoria sandwiches, inc.

This report examines strategic alternatives that would help owners of Livoria Sandwiches Inc. gain competitive advantage in a growing market, achieve its profitability target and maintain its strong reputation of having a high quality and unique product in the industry. This report provides an analysis of the company’s current situation, identify strategic issues and analyze strategic alternatives. These also provide recommendations as to courses of actions the brothers should adopt to reach their goal, and proposed implementation plan. CURRENT SITUATION Stakeholders Preferences: * Go franchising (Paul) * Enhance vegetarian menu (Sam) * Preserve quality and control (Sam) * Realize $1.1M net income by 2015 (both Paul and Sam) *Avoid using line of credit (both Paul and Sam) Constraints: * Cash…

Board of Directors, Linear Technologies

Based on the financials to date and the forward looking capital investments required Linear should increase their dividend payout by $0.01 per share. Entering the fourth quarter of 2003 the market seems to show continued signs of improvement. The company has shown steady growth and revenues are forecasted to exceed 2002’s by 19%. The forecast shows net income coming in at $222.7m; a robust 12% increase over last year. Linear has however increased its cash holdings to be in excess of $1.5b through various management initiatives. However this $1.5b has only shown investors a 4.25% growth which translates to $0.10 earnings per share pre-tax. This is in line with the company’s history of conservatism. Looking ahead the company does seem…

The Value of Hennes & Mauritz

In the last year the world economic recovery has come a long way. The Swedish economy has been at the forefront of that recovery and has showed impressive GDP growth. With still a lot of economic stress worldwide, mostly concerning national debt, it is still unclear if we have seen all that the financial crises, culminated in the late 2008, has to offer. With this said, the last years high volatility in the financial markets, will have an impact on this thesis. In almost all forms of valuation, some input will always be historical, why the past extreme years will affect the valuation. The models that are being used are the Dividend Discount Model and Free Cash Flow To Firm….

Capital investment analysis and inflation and capital investment analysis with taxation

Inflation refers to persistent increase in price of goods and services. It is also referred to as average general increases in the price of goods and services. Prior to this time, there had been lots of argument amongst writers in finance on whether or not to ignore or include inflation when computing capital budgeting. The argument has always being that inflation affects both the discount rate and the cash flow hence the effect will always cancel out. During inflation shareholders will always demand for higher rate of return because inflation has a way of eroding the purchasing power of the shareholders but the impact of inflation on the company’s rate of return and the expected cash flow are not always…

Cafes Monte Case

The company located in Milan, Italy. It was found by Mario Salvetti as a manufacturer and distributor of premium finest coffees. The company faces a hard decision that may affect their future. The company wants to know whether or not they should keep working in the same investing. An important meeting was there among the top management team’s members to discuss the future of the company. The company’s performance was good in 2000. Profit was shown at the financial statement. Giacomo Salvetti the CEO of the company needs to decide which to choose as the business strategy for the company: 1) Keep working in the premium coffee market. 2) Transfer to the private brands market. The current capacity of the…

Queensland University of Technology

Consultation Times: Consultation times will be posted on the Blackboard site by the end of Week 1. As this is a 12 credit point unit, students are expected to spend 12 hours per week studying. As there are 3 hours of contact, you are expected to spend on average an extra 9 hours in your own time, studying and completing all assessment items. Mode of Offering This unit is not offered in the form of external study. While resources such as lecture recordings and tutorial solutions may be made available, it is expected that students will attend class and participate, such that electronic resources are used in addition to attendance at scheduled classes. Blackboard You are deemed to have full…

BCG matrix of hindustan uniliver limited

Cash cows :are units with high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a “mature” market, and every corporation would be thrilled to own as many as possible. They are to be “milked” continuously with as little investment as possible, since such investment would be wasted in an industry with low growth. Dogs, or more charitably called pets, are units with low market share in a mature, slow-growing industry. These units typically “break even”, generating barely enough cash to maintain the business’s market share. Though owning a breakeven unit provides the social benefit of providing jobs…

Generally Accepted Accounting Principles

11. a. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500,000) $52,500 $47,500 $35,500 $530,500 Tax cost (7,875) (7,125) (5,325) (4,575) After-tax cash flow 44,625 40,375 30,175 525,925 Discount factor (7%) .935 .873 .816 .763 Present value $(500,000) $41,724 $35,247 $24,623 $401,281 NPV $2,875 Investor W should make the investment because NPV is positive. b. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500,000) $52,500 $47,500 $35,500 $530,500 Tax cost (10,500) (9,500) (7,100) (6,100) After-tax cash flow 42,000 38,000 28,400 524,400 Discount factor (7%) .935 .873 .816 .763 Present value $(500,000) $39,270 $33,174 $23,174 $400,117 NPV $(4,265) Investor W should not make the investment because NPV is negative. c. Year…