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Cash flow Essay Topics & Paper Examples

Goldman Sachs Case

Report Format I.Statement of the Problem II.Alternative Solutions III.Analysis of Alternative IV.Final Recommendations V.Appendix I.Statement of the Problem If the firm remains a partnership could the firm continue to compete on an equal footing with its competitors, would they be able to retain key employees? How would tangible as well as intangible assets be valued in its stock price as a public firm? Problem: What initial public offering valuation would be most appropriate for Goldman Sachs & Co. to use? II.Alternative Solutions 1. Industry Comparables 2. DCF model III.Analysis of Alternatives In order to compare Goldman Sachs to companies in its industry the information in Exhibit 2 of the case has to be used. A way to compare the information…

Efficient Market

Q1. Efficient market is one in which stock prices fully reflect the information of a company, either positive or negative. If the information from a company is positive, investor will give a good response and the price of shares of this company will increase. Since the information is reflected in price at once, normal rate of return should only be obtained. Also the price that the firm received from issuing securities is the present value, and valuable financing opportunities are unavailable. There are three conditions that will cause market efficiency, which are the rationality of investors, dependent deviations from rationality and arbitrage. Three forms are divided by researcher according to the availability of information. The first one is Weak Form….

Haefren Baum

Marketing analysis: Haefren Baum sells high quality home furniture, which is manufactured by German company, Wiegandt GmbH Cologne. The demand for high-end furniture is cyclical and influenced by consumer confidence and the overall economy. They have been incorporated since 1970, therefore they do have a reputation and brand image already built. They have been a customer of Wiegandt since 1968 and have maintained good relations so far. The German economy had a bust in 1993, which lead to a decline in furniture sales. This is evident in the sales dropping in 1993 to 1995 from $18,647 to $14,397. Much of the industry has to cut back prices to keep sales volume up. Haefren Baum, being a small retailer was really…

Capital Budgeting Case

Your company is thinking about acquiring another corporation. You have two choices—the cost of each choice is $250,000. You cannot spend more than that, so acquiring both corporations is not an option. The following are your critical data: Corporation A Revenues = $100,000 in year one, increasing by 10% each year Expenses = $20,000 in year one, increasing by 15% each year Depreciation expense = $5,000 each year Tax rate = 25% Discount rate = 10% Corporation B Revenues = $150,000 in year one, increasing by 8% each year Expenses = $60,000 in year one, increasing by 10% each year Depreciation expense = $10,000 each year Tax rate = 25% Discount rate = 11% Compute and analyze items (a) through…

Generally Accepted Accounting Principles and New Stadium

Tottenham Hotspurs, Plc. This certain case has many different possibilities for evaluation which gives it much complexity and much liberty while evaluating it. The soccer business sure has a certain relation with the performance and their revenues which makes it highly unstable when speaking of forecasted income of the club. We must first value the firm at its current position in order to be able to value as compared to acquiring the new stadium and obtaining a new goal scorer. In order to do so we must evaluate the company by creating a Discounted Cash Flow analysis projecting the expected future revenues in the same current strategy which they are in. We would then lay out the future expected cash…

Background Caledonia Products

c. Why should Caledonia focus on project free cash flows as opposed to the accounting profits earned by the project when analyzing whether to undertake the project? Free cash flows are being focused on because it the amount that Caledonia will receive and they will be able to reinvest that amount. Caledonia should analyze the free cash flow so that they are able to see the real amount of value or what the cost may be. The marginal value from the project would be in the incremental cash flow. The earnings would be much less if they were looking at it through the accounting profits. It would be less because of the depreciation would be considered an expense causing a…

Related Literature to the Cash Flow Management

The role of cash flow information in discriminating between bankrupt and non-bankrupt companies remains a contentious issue. In a number of literature reviews on bankruptcy prediction (e. g. Zavgren, 1983; Jones, 1987; Neill et al. 1991; Watson, 1996) the common view is that cash flow information does not contain significant incremental information content over accrual information in discriminating between bankrupt and non-bankrupt firms. (Divesh S. Sharma, Senior Lecturer, School of Accounting, Banking & Finance, Faculty of Commerce & Management, Griffith University, Nathan, Queensland 4111, Australia) A cash flow statement is an important indicator of financial health because it is possible for a company to show profits while not having enough cash to sustain operations. It is a financial report that shows…

Business Plan Marketing

Starting a new/ successful business can be one of the hardest things that a person can do in their life. The business can come second to nothing in life , not even your family. This is often where people make the mistake and get in to deep. Planning is just the beginning but is the most important aspect of the whole process. According to Uggla and Filipsson developing a company brand is one of the most important aspects of starting a business also. They used examples like Adidas, H&M and Microsoft as good companies to look at as examples. A strong foundation to a business will be a huge help in making the business successful and profitable as quickly as…

Final Project AAT

1.TERMS OF REFERENCE 1.1 The report has been prepared to cover the requirements of the AAT Unit “Internal Control and Accounting Systems”. 1.2 The objectives of the report are to analyse the accounting function at Inkwell Ltd and to identify any weaknesses, so that recommendations for the implementation of a new and improved system can be put in place, in order to minimise errors and to prevent fraud. 2. EXECUTIVE SUMMARY 2.1 The aim of the report is to analyse and evaluate the current internal control system and accounts receivable ledger of Inkwell Ltd. 2.2 The findings of the investigation highlighted the flowing weaknesses: The Retail shops use stand-alone computers which are not connected to the network. Lack of security…

Capital Budgeting Case

In the two capital budgeting cases corporations (A and B) have different revenues values and expenses as well as variable depreciation expenses, tax rates and discount rates. The members of our team had to compute both corporate cases NVP, IRR, PI, Payback Period, DPP, and project a 5-year income statement and cash flow in a Microsoft Excel spreadsheet. The future cash flows of the project and discounts them into present value amounts using a discount rate that represents the project’s cost of capital and its risk is what’s needs to forecast the investment. Next, all of the asset’s future positive cash flows are reduced into one current value number. Subtracting this number from the original cash expense required for the…

Statement of Cash Flow

The importance of cash the cash flow statement help businesses and creditors understand how liquid a company is. Team A discussed some important factors about the statement of cash flow. The purpose of the statement of cash flow and how it is used in accounting is explained. The direct and indirect method of preparing a statement is used. Steps in preparation and classification are explained. The team also examines things that they struggled with and also things that they were comfortable with. The purpose of the statement of cash flow Statement of cash flows purpose is to provide information of cash payment, cash receipt of a business during a period. It also provides answer to question for future investors wanting…

Worldwide Paper Case

Blue Ridge Mill currently purchases shortwood from a nearby competing mill for pulp production. Bob Prescott, the controller for Blue Ridge Mill, is considering the addition of a new on-site longwood woodyard. The new woodyard would have two main benefits including the ability to eliminate the need to buy shortwood from an outside source and the opportunity to sell shortwood on the open market as a new market for Worldwide Paper Company. The new woodyard would allow Blue Ride Mill to decrease its operating costs as well as increase their revenues. We analyzed projections to see if the benefits of the new on-site longwood woodyard exceed the $18 million capital outlay plus the incremental investment in working capital over the…

Suggested Questions for Arcadian Microarray

Prepare to explain the implications of case Exhibit 1 (Paige Simon’s first task). Based on that exhibit, is terminal value a material component of firm values? Drawing on case Exhibit 4 and your own general knowledge, where would the various estimators be appropriate? Where would they be inappropriate? (Simon’s second task) Regarding the cash flow forecasts in case Exhibit 5, at what point in the future would you set the forecast horizon for the three investments? Why? More generally, what should determine when you stop forecasting annual cash flows and estimate a terminal value? Estimate other terminal values based on alternate estimation approaches. From these various estimates, please triangulate toward a single composite estimate of terminal value for each of…

Working Capital Simulation: Managing Growth Assignment

Sunflower Nutraceutical (SNC) is a distributor in the Miami, Florida area is a privately owned company. Sunflower Nutraceutical is a business that started as a direct –to-consumer distributor and retailer in products related to supplements that include vitamins, minerals and herbs for women, and all ages. This company has successfully and ambitiously expanded their business and SNC continues to operate and desires to expand their business to plans to operate and expand their market and product line. SNC has continue to have a break even in sales growth and annual revenues. It is the goal of SNC and to advise them in terms of investing for growth and cash flow improvement opportunities. The purpose is to assist the decision making…

Euroland food

In early January 2001, the senior-management committee of Euroland Foods was to meet to draw up the firm’s capital budget for the new year. Up for consideration were 11 major projects that totaled more than €316 million. Unfortunately, the board of directors had imposed a spending limit on capital projects of only €120 million; even so, investment at that rate would represent a major increase in the firm’s current asset base of €965 million. Thus, the challenge for the senior managers of Euroland Foods was to allocate funds among a range of compelling projects: new-product introduction, acquisition, market expansion, efficiency improvements, preventive maintenance, safety, and pollution control. The Company Euroland Foods, headquartered in Brussels, Belgium, was a multinational producer of…

Cost benefit analysis CanGo

VIA Consulting has been hired in CanGo’s behalf to assist its management group in the decision making of the implementation of the new operating ASRS system, and we came out with the following financial information and data. CanGo started operating as a small company in 2006. In 2008 the company reported a net profit of $7,000,000 and $15,000,000 for the 2009. The company’s most profitable division has been its online book sale. Due to the fact that CanGo has been increasing its sales and revenue for more than 100%, the company has demonstrate that it is a profitable organization, but at the same time, it has been reporting an increase on client’s complains for a deficient customer service. According to…

Appendix B: Financial analysis

Financial analysis is the mean to clarify most important factors that affected Costco performance and resulted in companies’ success. In order to reach that goal, we studied financial performance of Costco for 2008 to 2012. These data obtained from different sources such as Costco annual reports and other respectable financial sources. At some levels comparison between leading companies in the industry such as Sam’s club and Bj’s has been made. The major problem that we faced during that process was that Sam’s club considered as subsidiary of Wall mart, which made comparison less sensitive. By using financial statement, we calculated different financial ratios for liquidity, debt ratios and other significant in order to see the performance of Costco more clearly….

Case Study Importance of Accounting Standards

The importance of accounting standards A PricewaterhouseCoopers Case Study Introduction PricewaterhouseCoopers was created in July 1998 by the merger of two firms – Price Waterhouse and Coopers & Lybrand – each with historical roots going back some 150 years and originating in London. PricewaterhouseCoopers, the world’s largest professional services organization, helps its clients build value, manage risk and improve their performance. Drawing on the talents of more than 140,000 people in 152 countries, it provides a full range of business advisory services to leading global, national and local companies and to public institutions. These services include audit, accounting and tax advice; management, information technology and human resource consulting; financial advisory services including mergers & acquisitions, business recovery, project finance and…

Victoria Chemicals: Case study

Victoria Chemicals: Case study Introduction Victoria Chemicals is a major competitor in the worldwide chemical industry. They are a leading producer of polypropylene, which is a polymer used in products such as medical products and automobile components. Victoria Chemicals started up in 1967 when they built two plants, one in Merseyside, England and one in Rotterdam, Holland. Both plants were identical to each other and produced an equal amount of goods. In 2008 these two plants have an old-fashioned production process of polypropylene and the production costs are some of the highest in the industry. The plants need to be renovated and rationalized. Victoria Chemicals was also under pressure from investors to improve their financial performance as the earnings per…

When Key Employees Clash

Though the issue looked like personal conflicts on the face, it actually stems from the friction between two departments fundamentally different in their working methods and thought processes. The fact that the two managers, Ellen and Ronnie, with different working styles leading these two departments has only compounded the problem. Ellen’s complaint was that Ronnie’s team is not sending their timesheets in time, which is leading to late payments from the insurer and shortage in cash flow. Even Ronnie acknowledges this but the solution appears to be different in each other’s minds. Ronnie is adamant that they just need more time, while Ellen is saying that genuine effort is required, not just time extensions. As much as possible, company should…

Wiley Plus

1. Transactions for Mehta Company for the month of May are presented below. Prepare journal entries for each of these transactions. 2. On July 1, 2012, Crowe Co. pays $19,628 to Zubin Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Crowe Co. journalize the entry on July 1 and the adjusting entry on December 31. 3. Dresser Company’s weekly payroll, paid on Fridays, totals $6,600. Employees work a 5-day week. Prepare Dresser’s adjusting entry on Wednesday, December 31, and the journal entry to record the $6,600 cash payment on Friday, January 2. 4. Side Kicks has year-end account balances of Sales $890,660; Interest Revenue $16,870; Cost of Goods Sold $557,320; Operating Expenses…

Memorandum-Statement of Cash Flows

Memorandum To:Stockholders of Carpino Company CC:Ms. Lydia Money, Chief Executive Officer From:W. E. Count, Financial Analyst Date:10/5/13 Re:Corporate Financial Position/Statement of Cash Flows I have been charged to examine the Financial Statements of Carpino Company for the purpose of providing an objective opinion regarding organizational capacity to generate sufficient cash to continue as a going concern. Toward that end, I have examined financial statements and have prepared the attached Statement of Cash Flows for the Year Ended January 31, 2007. I am pleased to inform Carpino Company stockholders that your company has successfully begun the transition from the introductory phase to the growth phase of operations and your prospects for continued financial growth are excellent. Carpino Company’s Statement of Cash…

Capital Budgeting

On this paper the reader will be able to find the rationale in the analysis of a specific capital budgeting case study. Definitions along with explanations related to capital budgeting such as Internal Rate of Return (IRR) and Net Present Value (NPV) will be provided and debriefed. It is extremely relevant to mention that capital budgeting allows the companies to analyze one or more projects to decide eventually which project or piece of equipment would be most profitable or suitable (economically), according to the needs and the capacities the company has. Before entering into the analysis a little further and into the company chosen let us define what Net Present Value really is. According to Business Dictionary (2011) the definition…

AO2/A03 How Steve Brankin manages people, finances and resources with in Asidua

AO2/A03 How Steve Brankin manages people, finances and resources with in Asidua In Asidua the management of people, finances and resources under Steve are central to business success. He undertakes this huge managerial task in a number of ways. Interviewing Steve gave me a great insight into these methods. Managing People Recruitment, Retention and Training of Employees. Employees in Asidua have to go through a short listing process and a job interview. Jobs are advertised on their website, Asidua.com kike the example in appendix 1 showing the job vacancy for an “Experience NET Designer”. Steve will also make sure that this job is advertised properly so people capable of doing the job can apply. Another method of recruitment overseen by…

Ariel case study

Case analysis: Statement of problem: 1. First of all Martin have to find out if the company should improve the equipment. 2. If they decide to improve, then, which currency should they make the purchase in? 3. How can they calculate what their expected rate of return at the most certainty? Analysis: The general question is if the company should make the improvement or not, and if they do (assuming the project is beneficial) which currency will give the highest profit? Since it is calculated that the cost will drop when implementing the new equipment, we assumed that the cash flow equals the difference between the two figures. The NVP is 2,960,532 pesos, but Martin wanted to know whether to…

Hansson Private Label Case Study

This project is to identify and analyze HPL (Hansson Private Label ) company’s new investment decisions based on a series of calculations include: Operating Cash Flows (OCF), Net Present Value (NPV), Internal Rate of Return (IRR), and Sensitivity Analysis. The analysis suggests that Hansson should be very cautious regarding the investment proposal that is developed by his manufacturing team. Although the projections and analysis of the project for the next 10 years proposed by Robert Gates seems reasonable and will generate positive NPV and an IRR greater than the discount rate, NPV is very sensitive with regard to unit volume and unit selling price changes. A decrease in the projected unit volume and selling price might produce a negative NPV….

New Heritage Doll Company: Capital Budgeting

The New Heritage Doll Company’s Vice-President of Production, Emily Harris, had to decide which of two proposals she should approve for the company’s upcoming capital budgeting meetings. The first project involved expanding an existing “Match My Doll Clothing” line, which had a proven record of success in the past. The second project introduced a new initiative called “Design Your Own Doll”, which used a web-based software enabling users to customize a doll’s features to the customers’ specifications. To help Emily reach her decision, I will calculate the Net Present Value (NPV) of both projects to find out which project is more profitable. In the financial analysis of both projects Emily was given the following assumptions: 1. Operating projections were used…

The Merseyside Project

Late one afternoon in January 2008, Frank Greystock told Lucy Morris, “No one seems satisfied with the analysis so far, but the suggested changes could kill the project. If solid projects like this can’t swim past the corporate piranhas, the company will never modernize.” Morris was plant manager of Victoria Chemicals’ Merseyside Works in Liverpool, England. Her controller, Frank Greystock, was discussing a capital project that Morris wanted to propose to senior management. The project consisted of a (British pounds) GBP12 million expenditure to renovate and rationalize the polypropylene production line at the Merseyside plant in order to make up for deferred maintenance and to exploit opportunities to achieve increased production efficiency. Victoria Chemicals was under pressure from investors to…

Mensa Strategy

A five-year strategic plan Mensa has been engaged with the various businesses, which include; packaging, forest products, energy and financial services businesses. There is a lot of change on multiple levels of the company which is necessary for Mensa to achieve profitability. This strategic plan will provide the correct direction to the business to achieve this goal. Mensa will need to implement a variety of different techniques in order to become a successful growing business. Without the changes outlined in this strategic plan, the company faces significant financial distress. Mensa’s Financial Services Business This business provides insurance, mortgage loan, real state financial services and consultancy services to its customers. It was not a huge business but the management had done…

Determinants of Dividend Payout Ratio

Determinants of Dividend Payout-Ratio: A Study of Philippine Stock Exchange-Listed Banks, 2007-2011 Introduction Dividend policy is one of the most controversial subjects in finance literature and still `management always ponders about the dividend payment and also why investors need to pay attention on dividend. It is also a corporate profit that is paid out or considered as an income by the corporation to be distributed to its shareholders as a reward for investing. It is also considered as the sharing of recognized assets among shareholders that could either be paid by the corporation or called out by shareholders anytime. However, it is not a business expense for the corporation. Thus, the rules and guidelines used by the corporation to decide…