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Cash Management, Banking Operations and Cash Equivalents

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1. How is cash managed at your organization?

2. What are the banking operations used at your organization? How often are the banking operations reconciled? How often should the banking operations be reconciled?

3. What types of cash equivalents does your organization have? How are the cash equivalents at your organization controlled?

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How is cash managed at your organization?

Cash within my organization is managed by the accountant. Every aspect that relates to the handling of cash all passes through the jurisdiction of the accountant, who is charged with not only receiving and receipting cash got, but making payments and recording all cash equivalents and transactions within the company's books of accounts. The cashier keeps physical records as well as soft copies of records of all transactions since they are all captured within the organization's computing systems.

What are the banking ...

Solution Summary

Management of cash in an organization, banking operations that are used, and the types of cash equivalents used are discussed in this solution.

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Determine the appropriate cash flow statement treatment / classification (e.g., operating, investing, financing) and timing, if applicable

Go Orange, Inc.
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1. Insurance Settlement Proceeds
The Company reached a settlement with its insurance carrier related to a claim from a tornado that destroyed one of the Company's manufacturing facilities. During the year, the Company received proceeds of $20 million from its insurance carrier in connection with its claim for reimbursement for the destroyed building. The Company plans to use the insurance proceeds to fund its defined-benefit pension plan, rather than to rebuild the destroyed facility.

2. Sale of Accounts Receivable
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3. Acquisition of Property, Plant, and Equipment on Account
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Required:
Determine the appropriate cash flow statement treatment â?" classification (e.g., operating, investing, financing) and timing, if applicable, â?" for the above transactions.

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