Explore BrainMass

Explore BrainMass

    Cash and liquid assets

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Can someone please provide some assistance with a question. Its for an MBA course. Refer to the financial data provided for the sample organization in Laughlin, Chapter 10. In your estimation, does this organization have adequate liquid assets? What would you recommend to this organization to strengthen its financial condition? Please see the attached documents to further assist me. Thank you so much in advance for your help.

    © BrainMass Inc. brainmass.com June 4, 2020, 5:17 am ad1c9bdddf


    Solution Preview

    This company seems to have plenty of liquid assets. Cash is abundant, and the temporary investments have cash that is accessible. This has to be balanced with the actual cost of operations for the company, which is high, more than $9K per day. There are a lot of donations in the pipeline, which means some more cash potential. Unfortunately, receivables are only as good as those who have already paid. Not having the cash in hand and waiting of someone to pay only works if the person can be guaranteed to provide the funds for the promised donations. This is never a completely acceptable way to do business, because people sometimes are not dependable and do ...

    Solution Summary

    Using the supplied financial statement, a determination if the company has enough liquid assets.