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    Cash gap analysis

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    xcel spreadsheet help

    a. Read the article "Tweaking the Numbers," by Theo Callahan in the June 2001 issue of the Journal of Accountancy (either the print edition, likely available at your school's library, or access the Journal of Accountancy archives at www.aicpa.org). Follow the instructions in the article to create a spreadsheet with graphs that do what-if analysis.

    b. Now create a spreadsheet to do graphical what-if analysis for the "cash gap." Cash gap represents the number of days between when a company has to pay its suppliers and when it gets paid by its customers. Thus, Cash gap = Inventory days on hand + Receivables collection period - Accounts payable period.
    The purpose of your spreadsheet is to display visually what happens to cash gap when you "tweak" policies concerning inventory, receivables, and payables.

    c. Set the three spin buttons to have the following values:

    Spin button for Inventory Spin button for Receivables Spin button for Payables
    Linked cell C2 C3 C4
    Maximum 120 120 90
    Minimum 0 30 20
    Value 30 60 20
    Small change 10 10 10


    In addition, conduct research and seek out an ERP accounting system. Briefly summarize what report writer software is either embedded in it or which one would work to provide management with a production report. Include links to your source.

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    Solution Preview

    Microsoft Dynamics is an enterprise resource planning (ERP) software that connects entire business together from financial and supply chain management and from manufacturing to operations. The benefit of Microsoft Dynamics is that it enables finances, sales and operations to run on applications which work together with Microsoft Office apps which are well known with users.
    Microsoft FRx ...

    Solution Summary

    Excel spreadsheet for graphical demonstration of change in inventory, receivables and payables on cash gap. Also included is document on ERP accounting system.