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Cash Management

Financial Management

You are analyzing a proposed 4-year project. You expect to sell 20,000 units per year at an average selling price of $5 per unit. The initial cash outlay for fixed assets will be $120,000. These assets will be depreciated straight-line to a zero book value over the life of the project. The fixed assets will be worthless at the e

Describe the roles and responsibilities of management and independent auditors in the financial reporting process 2. Define the following three users of financial accounting disclosures and the relationships among them: a) Financial analysts b) Private investors c) Institutional investors 3. Briefly describe the role of information services in the communication of financial information. 4. Explain why information must be relevant and reliable to be useful. 5. What basis of accounting does GAAP require on the a) Income statement b) Balance sheet c) State of cash flows 6. Briefly explain the normal sequence and form of financial reports produced by private companies in a typical year. 7. Briefly explain the normal sequence and form of financial reports produced by private companies in a typical year. 8. What are the four major subtotals or totals on the income statement? 9. Define extraordinary items. Why should they be reported separately on the income statement? 10. List the six major classifications reported on a balance sheet 11. For property, plant, and equipment, as reported on the balance sheet, explain: a) Cost b) Accumulated depreciation c) Net book value 12. Briefly explain the major classifications of stockholders' equity for a corporation 13. What are the three major classifications on a statement of cash flows? 14. What are the three major categories of notes or footnotes presented in annual reports? Cite an example of each 15. Briefly define return on assets and what it measures

1. Describe the roles and responsibilities of management and independent auditors in the financial reporting process 2. Define the following three users of financial accounting disclosures and the relationships among them: a) Financial analysts b) Private investors c) Institutional investors 3. Briefly describe the

cash budgets

Imagine you are preparing a business's cash budget, which involves determining the amount of cash to keep on hand. How might the nature of the business affect your decision? Provide specific examples in your response.

Pet Joy Wholesale Inc. - Prepare schedule of cash collections and cash payments

Pet Joy Wholesale Inc., a pet wholesale supplier, was organized on May 1, 2010. Projected sales for each of the first three months of operations are as follows: May $340,000 June 460,000 July 610,000 The company expects to sell 11% of its merchandise for cash. Of sales on account, 53% are expected to be collected in

Compute net cash provided by operating activities

Hendrickson Corporation reported net income of $50,000 in 2010. Depreciation expense was $17,000. The following working capital accounts changed. Accounts receivable $11,000 increase Available-for-sale securities 16,000 increase Inventory 7,400 increase Nontrade note payable 15,000 decrease Accounts payable

Multinational cash management: Combine banking with foreign exchange management.

What are cross-border banks and how would I describe the international banks that offer multinational cash management services that combine banking with foreign exchange management? Select one bank and describe how the services it offers to take care of the firm's international working capital management requirements? - Ba

Four controls to prevent/detect cash rec fraud

Identify four controls that can aid in preventing or detecting errors or fraud in recording cash receipts. For each control discuss the tests of controls you would perform to assess its operating effectiveness.

Cash Management, Banking Operations and Cash Equivalents

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

Calculate cash collections for June for PDQ Company

The PDQ Company makes collections on credit sales according to the following schedule: 25% in month of sale 70% in month following sale 4% in second month following sale 1% uncollectible The following sales have been budgeted: Month Sales April $100,000 May $120,000 June $110,000 Cash collections in Jun

Holding Cash

What are the two principal reasons for holding cash? Can a firm estimate its target cash balance by summing the cash held to satisfy each of the two reasons?

Finman Company: Journal Entry for Petty Cash Fund

Finman Company designated Jill Holland as petty cash custodian and established a petty cash fund of $200. The fund is reimbursed when the cash in the fund is at $15. Petty cash receipts indicate funds were dispursed for office supplies $94 and miscellaneous expense $87. Prepare journal entries for the establishment of the fund a

Determining Cash Flows by Deduction

A firm reported $130 million increase in cash over a year. It also reported $400 million in cash flow from operations, and a net $75 million paid out to claimants in financing activities. How much did the firm invest in operating assets?

Cash Management and Receivables Turnover

1. City Farm Insurance has collection centers across the country to speed up collections. The company also makes its disbursements from remote disbursement centers so cheques written by City Farm take longer to clear the bank. Collection time has been reduced by two days and disbursement time increased by one day because of thes

Cash Receipts-- ASAP!!

Nocioni's Management Consultants has found that only 10% of its invoiced amounts are paid in the same month that the work is completed. Sixty percent are paid in the month after the work is completed and 30% are paid in the second month after the work is completed. During December 2007, Nocioni's invoiced $200,000 to clients.

Production, budgeting, efficiency, MRP, annuity, DCF, cash flow, markets

26. Dude Outfitters uses the same production line to make shirts and jeans from denim and rivets. Information on the production resources and product demand follows: Shirts Jeans Expected annual demand (units) 8,000 12,000 Denim requirement per unit 2 yards 3 yards Rivet requirement per unit 5 13 Direct labour require

Cash sources, retained earnings and cash shortages

a. If you could pick a single source of cash for your business, what would it be? Why? b. How can a business earn large profits but have a small balance in Retained Earnings? c. How can a business lose money for many years and still have plenty cash? d. Give two reasons why a business can be profitable for many years an

Accounting

Traditional measures of financial and managerial accounting are often based on net income. However, net income is not the actual cash available to a given firm. As such, most bankrupt companies do not have sufficient liquidity (cash or assets easily convertible to cash) to cover pressing obligations. Discuss the relative importa

Analyzing annual reports for BP, Quicksilver Inc., and RTL Group

Discuss each of the following terms. Your discussion should expand on the definition as given in the course terms. Explain why this concept is important to financial statements. A. Generally Accepted Accounting Principles. B. Double Entry Accounting. C. Historical Cost. D. Accrual Basis vs. Cash Basis Accounti

Cash Management: Cash Collection and Ending Cash Balance

A. Big Bob's Discount Appliances expects sales of $5,000, $5,000, and $10,000 during April, May, and June (big sale in June). To build business, Big Bob lets all customers buy on credit, and all do so. In the past, 50% of Big Bob's sales have been collected during the month of sale, 40% are collected the following month, and

Financial Management Foreign Project

-In a foreign project, there are specific risks associated with the location of the project, for example in a country with an unstable political or economic system. How can one modify the cash flow calculations to account for increased risks?200 words -In using capital budgeting to evaluate a potential foreign project, is

Among the cash management techniques used by most businesses are those that slow down their bill payments. A good example for this is "Cash Rebates" offered on household items like computers and other electronics.

Among the cash management techniques used by most businesses are those that slow down their bill payments. A good example for this is "Cash Rebates" offered on household items like computers and other electronics. Are these practices sound business decisions? Are they ethical? Explain. What percentage of the rebates offere

Management Accounting Problems: Cost of Labour and Cash Accounting

I need help with the following 2 problems... 1) The following direct labor information pertains to the manufacture of product Glu: Time required to make one unit 2 direct labor-hours Number of direct labor workers 50 workers Number of productive hours per week, per worker 40 hours We

Finance Management Questions

1. What is the present value of $1,000 to be received 10 years from today? Assume that the investment pays 8.5% and it is compounded monthly (round to the nearest $1). a. $893 b. $3,106 c. $429 d. $833 2. The future value of $500 deposited into an account paying 8% annually for three years is: a. $500. b. $630. c. $700