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., 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
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
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
Imagine the CFO of a company has asked you, the auditor, to review the internal controls for cash receipts and to evaluate its cash management of accounts. Prepare a one page letter to the CFO addressing the following questions: 1. Why are internal controls for cash important to the company? 2. What key internal control procedures are critical to safeguard cash and provide accurate procedures for cash receipts? Provide examples. 3. What would you recommend the CFO consider, for managing the collectability of cash for customers on credit (accounts receivable)? Describe the benefits of these recommendations. 4. Explains the meaning and importance of internal controls, and provides examples of why they are important
Imagine the CFO of a company has asked you, the auditor, to review the internal controls for cash receipts and to evaluate its cash management of accounts. Prepare a one page letter to the CFO addressing the following questions: 1. Why are internal controls for cash important to the company? 2. What key internal control proce
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.
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
Cash Management Techniques: Discuss the concept of cash rebates and their effect on business; are they ethical?
Among the cash management techniques used by most businesses are those that slow down their bill payments. A good example for this is the concept of cash rebates. Cash rebates are most commonly offered on household items like computers and other electronics. Research "cash rebates" and other similar cash management techniques
Attached is a copy of a excel sheet for question #7. Unit 2 Written Assignment: Course Material: 5 Finkler, S. A. Financial Management for Public, Health, and Not-For Profit Organizations. Upper Saddle River, NJ: Prentice Hall, 2000, 470. 6 Gapenski, L. C. Healthcare Finance: An Introduction to Accounting and Financial Manag
Financial Management: If the firm is in the 40 percent marginal tax bracket, determine the annual net cash flows generated by the drill press.
A drill press costs $30,000 and is expected to have a 10 year life. The drill press will be depreciated on a straight-line basis over 10 years to a zero estimated salvage value. This machine is expected to reduce the firm's cash operating costs by $4,500 per year. If the firm is in the 40 percent marginal tax bracket, determine
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
What are some of the reasons (and there are 4 primary reasons) that a firm might want to hold some cash reserves on hand? And what is the downside of holding too much cash?
Complete the following questions in detail: 1). What methods do firms utilize to pay cash 2). What are the advantages/disadvantages of the various methods by which firms can pay out dividends 3). How much cash should a firm hold?
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
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?
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.
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
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
-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
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
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
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
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.
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%
1. Why should responsibilities for certain duties, like cash handling and cash recording, be separated? What types of responsibilities should be separated? 2. Define cash and indicate the types of items that should be reported as cash. If you are using a source please provide reference.
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
How much cash and cash equivalents did the Motorola have at the end of its most recent annual reporting period?
I need help in answering the question below in paragraph format. I must include mention of the financial statement (balance sheet, income statement, etc.) and any other information in the annual report that was used to answer the question.no more than a 100 words. Use the Internet to acquire a copy of the most recent annual
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
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