Determine ways to improve the cash flows of an organization by addressing the following questions:
What methods can be used to speed up a firm’s cash inflows? What methods can be used to delay a firm’s cash outflows?
What are some of the cash management strategies used by your organization or by organizations that you know?
Are there any ethical items to consider with any of these methods or strategies?
(in one hundred and fifty words)
With lesser reserves and fewer financial alternatives than corporate competitors, small businesses should prepare for the kinds of fluctuations in revenue that could prompt cash crises.
It’s wise to put together a set of policies that can help you cope with any cash shortages and keep your company afloat long enough for sales and profits to ramp back up.
If your cash-flow management procedures signal insufficient funds in the future, here are three techniques to help alleviate the problem.
1. Collect debts sooner. Many small-business owners commonly extend generous credit to customers. When your business has a cash crunch, one of the first steps in working through it is to ask customers who are “running a tab” to expedite a full or partial payment.
For example, you could:
2. Make payments later. A cash crunch is an excellent time to ask for extra credit from the vendors and suppliers you routinely pay. You can make a call and ask for extra time to pay, or simply take a chance and delay your next payment by two to four weeks.
Even if you forgo the small discount you’d normally get for making a prompt payment, these delays can go a long way toward easing a cash shortage.
You also could:
3. Rent vs. buy. This is a more strategic solution to a long-term cash shortage. Avoiding equipment and other major purchases — real estate, production equipment, and so forth — can help you reduce your business’s cash requirements until revenues rebound to their expected levels.
In addition to the cash savings, other advantages of renting large assets include increased flexibility (to make changes, including scaling up or down) and reduced responsibility (for maintenance, upgrades, and end-of-need disposal).
Determine ways to improve the cash flows of an organization by addressing the following questions: What...
What is the purpose of a statement of cash flows? Please explain in your own words how the statement of cash flow can be helpful to a business. What are the (3) major sections on a statement of cash flows, and what type of cash inflows and outflows should be included in each of these three sections? Assume that a company repays a $300,000 loan from its bank, and then later in the same year they borrow another $500,000. In...
47. Which of the following presents an effective technique to improve cash management? : A) Speed up cash payments and slow down cash collections. B) Speed up cash collections and slow down cash payments. C) Speed up both collections and payments of cash. D) Slow down both the payment and collections of cash. 48. As a result of cash flow shortages, Washington Department Stores has fallen behind in payments to suppliers. Some suppliers are withholding shipments to Washington until they...
2.
a. What net income would the company include on its statement of
cash flows?
b. How much depreciation would the company add to net income on
its statement of cash flows?
c. What is the amount and direction (+ or −) of the accounts
receivable adjustment to net income in the operating activities
section of the statement of cash flows?
d.
What does this adjustment represent?
Cash collected from customers > Credit sales
Cash payments > Cash collected
Cash...
Refer to 2019 Annual Report (Form 10-K) of Apple Inc. provided and answer the following questions relating to Apple’s Consolidated Statements of Cash Flows. Refer to the notes to financial statements for additional relevant information. (a) Determine whether net cash flow from operations is stable through time. (b) Did Apple’s operating assets and liabilities increase or decrease between the year ended September 29, 2018, and the year ended September 28, 2019? By how much? What items contributed most to the...
Chapter 8 Net Present Value/Uncertain Cash Flows Tiger Computers, Inc., of Singapore is considering the purchase of an automated etching machine for us production of its circuit boards. The machine would cost $800,000. An additional $550,000 would be required for installation costs and for software. Management believes that the automated machine wou provide substantial annual reductions in costs, as shown below: Labor costs Material costs Annual Reduction in Costs $140,000 $96,000 The new machine would require considerable maintenance work to...
Your Assignment · You are an outside consulting organization who has been retained by the CEO to fix the problems and make sure the mandate is driven throughout the organization. identify what strategic initiatives and changes you will recommend and the tactics to implement those strategies and changes based on this case study New Product Development Process Improvement Case Study Background: Horizon Giftables, Inc. is a 35-year-old consumer products company that manufactures and distributes home accessory products and décor items through...
To help guide the focus of your project, your audience is the CEO of a mid-size, private sector, non-unionized firm where you have recently been hired to replace the HR Director of the company. An announcement was made two weeks prior to you being hired regarding the abrupt departure of the former HR Director and you have been hired as the replacement. There have also been rumors that there will be reorganization and widespread layoffs within the company. Several employees...
Case Questions 1. What are the cash flows associated with each of Adam's three car financing options? 2. Suppose that, similar to his parents, Adam had plenty of cash in the bank so that he could easily afford to pay cash for the car without running into debt now or in the foreseeable future. If his cash earns interest at a 5.4% APR (based on monthly compounding) at the bank, what would be his best purchase option for the car? 3. In fact,...
the
dropdown option for the first question: net profit margin OR
operating profit margin // debt ratio OR equity multiplier.
the dropdown option for the second question: shareholder and
dividend management OR use of debt versus equity financing //
management of its revenues and depreciation methods OR control over
its expenses
9. An analysis of company performance using DuPont analysis A sheaf of papers in his hand, your friend and colleague, Jason, steps into your office and asked the following...
1.what is the fundamental of knowledge management cycle or process?
2. what is knowledge cycle?
3. what is intellectual capital and three dimension of
intellectual capital?
4. what is human capital? discusion with example
5. what is knowledge sharing and organization learning?
6. what is organization culture?
7. cultural impact of knowledge sharing?
8. what is data mining?
9. what is knowledge discover?
UNIVERSAL Chapter 1 Knowledge Management Overview UBSS SCHOOL SYDNEY Introduction to Knowledge Management (KM) In a knowledge...