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Cash Management

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

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 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 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

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

Cash Rebates: Are they ethical, sound business decisions, actually paid?

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. 1. Are these practices sound business decisions? Are they ethical? Explain. 2. What percentage of the rebates

Cash Flow from financing affect? Smith Co: Calculate cost of goods manufactured

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from financing activities generally affect a. Net income, current assets, and current liabilities. b. Noncurrent assets. c. Noncurrent liability and the equity accounts d. Both noncurrent assets and noncurrent liabilities.

Tiffany Company: how much cash will be paid to suppliers in March

Use the information below to answer the following question(s). The following information pertains to Tiffany Company: Month Sales Purchases January $30,000 $16,000 February $40,000 $20,000 March $50,000 $28,000 Cash is collected from customers in the following manner: Month of sale 30% Month following the sale 70%

Cost of Trade/Cash Management Techniques

I need with the following questions: How do you evaluate the cost and benefits of cash management techniques to maximize organizational value. What is the cost of float to an organization? How do you apply the cost of trade credit techniques to assess the cost of trade credit for an organization. What do discounts really

Conducting cost-benefit analysis of cash management

Nicholas Birdcage Company of Hollywood ships cages throughout the country. Nicholas has determined that through the establishment of local collection centers around the country, he can speed up the collection of payments by one and one-half days. Furthermore, the cash management department of his bank has indicated to him that h

Prepare a statement of cash flows using the indirect method. Compute these cash-basis measures: 1. Current cash debt coverage ratio. 2. Cash debt coverage ratio. 3. Free cash flow.

Presented below are the financial statements of Weller Company. WELLER COMPANY Comparative Balance Sheets December 31 Assets 2007 2006 Cash $35,000 $20,000 Accounts receivable 33,000 14,000 Merchandise inventory 27,000 20,000 Property, plant, and equipment 60,000 78,000 Accumulated depreciation (29,000) (24,000) Total

Mora Company maintains a petty cash fund for small expenditures.

E7-16 Mora Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August. Aug 1 Established the petty cash fund by writing a check on Central Bank for $200. Aug 15 Replenished the petty cash fund by writing a check for 170. ON THIS DATE, THE FUND CONSISTED OF 30 IN C