Abstract This paper reviews the statement of cash flows for Papa John's Pizza and Dominos Pizza, and identifies how much cash was generated or used by operating, financing and investing activities. Using the statement of cash flows, the paper identifies some of the significant internal events that affected the company's cash position. The paper describes the changes in revenues and net incomes over the company's solvency, liquidity and profitability.
Tags: statement of cash flows, liquidity and solvency, ratio analysis, comparative analysis
Abstract This paper is on cash flow for a small software company, noting the particular requirements of such a company and the way cash flow can be used to make decisions about the company.
From the Paper "Managerial accounting entails various specific elements of cash flow, but these and their effects may differ from one type of business to another. Different types of cash flow have to be considered for a software company, based on the business requirements, workforce, and business environment. One analyst notes that "growing software companies track the actual cash going in and out of the business very closely" (Crankshaw para. 7). Crankshaw also notes that in a software company, engineering, marketing, and operations often make product-related decisions "that not only strengthen the company's infrastructure and its competitive advantage in the marketplace, but that improve cash flow as well" (Crankshaw para. 3). The reason for this is because there are many non-cash events that can have a negative effect on profitability that can thus distort the image of the cash flowing through the business."
This paper examines the advantages and disadvantages of the legacy payment method which is currently the most widely used form of payment, aside from the direct use of cash.
Abstract This paper explores the various legacy purchase methods currently available which include credit cards, checks and online purchasing, which have basically done away with the need for actual cash. This paper details the various benefits to purchasing items and conducting business by way of a legacy payment method. This paper examines the numerous types of transactions that can be done with the use of a credit card including renting a car, hotel reservations, online and phone purchases. The writer of this paper also delves into the drawbacks of this particular payment method including the risk of exposing personal and financial information to third parties, when paying by credit card. This paper discusses the numerous problems that can arise when making purchases online where personal information is often vulnerable to exposure and unauthorized access. This paper also delves into the various technologies now available which help protect personal and sensitive information from being stolen which include the implementation of encrypted and secure websites.
Table of Contents:
Advantages
Disadvantages
Bibliography
From the Paper "One of the most critical issues that exist in the use of legacy payment methods in a networked environment, such as the credit card, is how secured are the financial and personal information of the credit card users. Especially when used online, where information is oftentimes vulnerable to threats and unauthorized access, there is a high possibility that credit card information may not be secured. This thus is causing great concerns for consumers. One of the processes when using credit cards in an online trading activity is the transmission of credit card numbers. If the server or web site that handles the information exchange between the consumer and the receiver is susceptible to unauthorized access, there is a chance that the credit card information may be stolen and used by another person for his own personal transactions."
Abstract This paper describes the life of John R. Cash, the son of humble sharecroppers from Dyess, Arkansas (Cash), who eventually became known as Johnny Cash, The Man in Black. The metamorphosis of Cash from the son of humble sharecroppers to "The Man in Black" and the twists and turns along the way, are the focus of this research. Ultimately, the paper reveals that Cash's story is as much a story of the pleasures and pitfalls of celebrity as it is a tale of the human experience, of sin and redemption, and the endless quest of the human soul to attain purity.
Table of Contents:
Introduction
A Great Man from Humble Beginnings
JR Cash Becomes "The Man in Black"
The Man Comes Around
Conclusion
From the Paper "According to Carl Perkins, an early band mate of Cash's, lifelong friend and a star in his own right, is probably the single most important catalyst to the occurrence that would transform JR Cash, struggling musician into Johnny Cash, rising star. As Perkins' account of the story goes, JR was rehearsing some pieces of a song he was working on with Perkins' help, but it seemed to be missing something. In the course of the work session, Perkins spoke casually to Cash about the temptations of being a musician on the road, and warned Cash about the loose women who would try to lure him into adultery."
Tags: celebrity, june carter, hymns temptations opry
Abstract This paper explains that, in cash basis or cash accounting, businesses record transactions only if they involve the payment or receipt of cash, which does a poor job of matching revenues earned with money laid out for expenses. The author points out that, in accrual accounting, the economic impact of a transaction is recorded whether or not the transaction involves cash, which does a better job of matching revenues with expenses and of handling items such as property and equipment. The paper relates that the four statements used in the accrual method accounting are the balance sheet, the income statement, the statement of cash flows and the statement of stockholders' equity.
From the Paper "An example would be a purchase of supplies in July but the supplies are not sold until August. You receive the cash in August. However, when the books are closed all you have to show for July is an expense for supplies but no revenue to offset it, meaning there is a loss for that month. This can make it difficult for a business to determine whether or not it is earning a profit because all its business activity does not always fall on the same month. It also has trouble tracking anything other than cash. For example if you purchased equipment or property the cash method of accounting would show the purchase and disbursement in the month of purchase. These items, however, will be used over a period of time."
Abstract This paper discusses the importance to a company of forecasting its cash flows. It begins by providing an explanation of what this entails and then describes the steps for a company to perform an efficient cash flow forecast. The paper concludes with examples of companies that managed to perform efficient cash forecasting and discusses the positive effects this had on these companies.
Table of Contents:
Introduction
Reasons To Forecast Cash Flows
How To Perform An Efficient Cash Forecasting
Success Stories
From the Paper "Compare cash forecasts to business plan outputs. By doing so, a company will take under consideration current business trends, rather than historical results. Usually, extrapolation based on historical results needs to be adjusted to all changes in the business environment. That is why comparing the cash forecasting results with those from the business plan can be useful. There is also the advantage of adjusting the results from the business plan to those from the cash forecasting by engaging the business units in this process, if the gap between the two methods is large."
"Last, but not least, the comparison is important to check the current business status against the forecasted results. This is particularly important for business units as they deal with the operational part of the company's activity and therefore are responsible for the operational results."
This paper is a research proposal on the risk and opportunities of working capital, working capital management, cash conversion cycle and credit management, among others.
Abstract This paper is a research proposal that discusses Lawrence Sports, a company that manufactures and distributes sports equipment and protective gear. Lawrence has a cash flow problem because its largest customer, Mayo Stores, is not paying on time. This paper benchmarks other companies to determine an alternative solution which will enable the company to improve its overall cash flows. The paper introduces research that assesses the risks and opportunities of working capital, working capital management, cash conversion cycle, credit management, and short-term financing/debt reduction to prepare for long-term opportunities, cash flow, and identifies the best practices in working capital management. Also, the paper has a large appendix with information from multiple companies.
Outline:
Abstract
Introduction
Conclusion
References
Appendices
Borders
General Electric
Magna Entertainment Corporation
Fleetwood Enterprise
Wal-Mart
Starbucks
Graham Manufacturing
Dell Computers
From the Paper "In addition to the other working capital issues identified, Lawrence Sports also is experiencing issues with its cash conversion cycle. Currently, Lawrence is using short-term financing in the form of cash from operations and a bank line of credit to not only finance short term assets such as inventory but also ongoing operations. Doing so places a significant pressure on the company to convert cash quickly. Benchmarking two other companies who have successfully controlled their cash conversion cycle could lend insights to Lawrence on how its CCC may be improved.
"Graham Manufacturing had a CCC of 134 days in 2004. By reducing the amount of time to collect 42% in 2007 and 37% in 2006 as well as increasing the amount of customer deposits prior to delivery of product Graham reduced its CCC down to 46 days by Q1 FY08. Following Graham's example Lawrence Sports could reduce its CCC by requiring Mayo, its largest customer, to pay more than 20% at the time of order. Additionally, Lawrence should focus on faster collections just as Graham did successfully. Such a plan could take the form of discounts for prompt payment or negotiate an interest charge for delayed payment."
This paper is a research proposal on the risk and opportunities of working capital, working capital management, cash conversion cycle and credit management, among others.
Abstract This paper is a research proposal that discusses Lawrence Sports, a company that manufactures and distributes sports equipment and protective gear. Lawrence has a cash flow problem because largest customer, Mayo Stores is not paying on time. This paper benchmarks other companies to determine an alternative solution which will enable the company to improve its overall cash flows. The paper introduces research that assesses the risks and opportunities of working capital, working capital management, cash conversion cycle, credit management, and short-term financing/debt reduction to prepare for long-term opportunities, cash flow, and identifies the best practices in working capital management. Also, the paper has a large appendix with information from multiple companies.
Outline:
Abstract
Introduction
Conclusion
References
Appendices
Borders
General Electric
Magna Entertainment Corporation
Fleetwood Enterprise
Wal-Mart
Starbucks
Graham Manufacturing
Dell Computers
From the Paper "In addition to the other working capital issues identified, Lawrence Sports also is experiencing issues with its cash conversion cycle. Currently, Lawrence is using short-term financing in the form of cash from operations and a bank line of credit to not only finance short term assets such as inventory but also ongoing operations. Doing so places a significant pressure on the company to convert cash quickly. Benchmarking two other companies who have successfully controlled their cash conversion cycle could lend insights to Lawrence on how its CCC may be improved.
"Graham Manufacturing had a CCC of 134 days in 2004. By reducing the amount of time to collect 42% in 2007 and 37% in 2006 as well as increasing the amount of customer deposits prior to delivery of product Graham reduced its CCC down to 46 days by Q1 FY08. Following Graham's example Lawrence Sports could reduce its CCC by requiring Mayo, its largest customer, to pay more than 20% at the time of order. Additionally, Lawrence should focus on faster collections just as Graham did successfully. Such a plan could take the form of discounts for prompt payment or negotiate an interest charge for delayed payment."
Abstract This paper examines why a company needs to have a good cash flow. It explains that to protect themselves from risk, businesses can use a wide range of sources of funds in order for them to be able to finance their trading activities. Although not all of them are in cash, the paper explains that they have the effect of improving cash flow on both short and long term; most sources of capital take the form of assets used by companies in order for them to function.
From the Paper "Budgeting is the process through which the resources and responsibilities of each center of activity are set. The budget is the prediction of the resources and expenses required in order for the objectives of the corporation to be fulfilled, respecting certain profitability conditions. The starting point may be last year's budget or, in some cases, Zero Budgeting may be employed (starting from scratch). Budgeting greatly increases the cash flow, if used correctly.
Manpower management is also an important method of improving cash flow. For instance, some workers do not require permanent contracts, work can be subcontracted or transferred to temporarily contracted workers, which has the effect of reducing expenses with pensions, insurance, holiday pay etc."
Abstract This paper explains the process of cash flow management. The author discusses the proactive role that the company treasurer can take in managing the credit and collection function. The paper describes the job of various employees in financial management.
From the Paper "According to Lucy Reuben writing in "Black Collegian" every organization, private or public, large or small, depends upon a management team that generates cash inflows sufficient to cover required cash outlays. Corporate financial management covers a diverse range of responsibilities related to the procurement and use of cash flows. These responsibilities are generally divided between a treasurer and a controller who both report to the vice-president of finance. The controller handles issues such as capital budgeting profit and loss analysis and working capital management. The treasurer's side ..."
Abstract This paper discusses Motorola's global cash management system which centralizes its various cash transaction processes throughout the organization. Its global strategies with regard to cash management are examined as are some of the challenges facing global managers in the contemporary business environment. Finally, the effect that recent financial scandals have had on corporate financial reporting requirements is expanded on.
From the Paper "The global economy has led the necessity of even nationally confined companies to adopt global operational strategies. In truly global enterprises such as Motorola, that has operations in more than 80 countries and revenues of over $23 billion in varying currencies, adjusting to this disparate operational platform can be difficult. Motorola's strategic benefits gained from consolidating and centralizing its cash management and transaction system into a global cash management system are many. Chief among these strategic benefits however is the cost savings achieved through foreign currency exchanges in the amount of $6.5 million in direct savings. Yet, this direct cost savings does not quantify the true savings to the corporation as a whole since a percentage of operational overhead has been reduced through a reduction in administrative functions as well as shifting much of the back-office responsibility of this system to ..."
Abstract This paper looks at cash management techniques and short-term financing within an organization and explores both options, with a comprehensive analysis of various techniques and methods. There is also an overview of the relative advantageous and disadvantages of the methodologies employed within each categorization.
From the Paper "Cash management techniques have become important as financial managers try to accurately monitor risk and exposure, and use policies for improved decision-making. Similarly, methods of short-term financing have gained much needed use, as organizations, try to utilize financing options and increase the overall efficiency of organizations. This paper will explore both options, with a comprehensive analysis of the various cash management techniques, and methods of short-term financing. There will also be an overview of the relative advantageous and disadvantages of the methodologies employed within each categorization."
Abstract This paper presents the basic forms and methods of accounting for cash accounting and accrual-based accounting and compares the two. It examines which form of accounting is more beneficial to specific sectors of the economy and looks at the advantages and disadvantages of each.
From the Paper "In the cash basis of accounting, the business records are "cash in" (deposits to the bank account) called cash receipts, and "cash out" (checks) called cash disbursements. Cash receipts - Cash disbursement = Cash flow. Each month's cash flow is added to the preceding month's cash balance yielding the current month's cash balance.
The cash basis of accounting is more likely to be used by service businesses than by retail or manufacturing businesses. Service businesses usually do not need equipment and can sell a service they perform with nothing more than their own hands and minds. Think of people who are lawyers, writers, public relations and advertising personnel, and accountants."
Abstract This paper compares and contrasts the capital asset pricing model (CAPM) and the discounted cash flow (DCF) model in valuing common stock. The paper holds that, because of the complexity and importance of valuing common stock, the above techniques have been devised over time to accomplish this task. It points out that CAPM focuses on inputs to calculate stock prices that are external to the firm while the DCF model focuses on internal factors. Also, CAPM is concerned with growth rate, while DCF is concerned with estimated returns. The paper concludes that both models are important to investors and expanding companies.
From the Paper "For a firm that is expanding, it is difficult to establish a proper growth rate for the DCF. If past growth rates in earnings and dividends have been relatively stable, and if investors appear to be projecting a continuation of past trends, then the growth rate may be based on the firm's historic growth rate. However, if the company's past growth has been abnormally high or low, either because of its own unique situation or because of economic fluctuations, then the growth rate has to be estimated in some other manner."
Abstract This paper explains that investors can evaluate the desirability of investing in United Parcel Service (UPS) and Federal Express Corporation (FedEx) by examining their financial statements, such as the cash flow statements and the annual reports, which these publicly traded companies are required to file with the Securities and Exchange Commission (SEC). The author points out, when evaluating cash flow statements, it becomes apparent that many internal events affect the cash flow position of the organization such as an increase of expenses rising in comparison to the previous year in gas prices. The paper relates that analysis ratios, such as Current Ratio, Return on Sales, Earnings per Share (EPS), Debt Ratio, and Price to Earnings (PE) Ratio, are helpful in determining a company's solvency, liquidity and profitability; both companies are liquid and solvent because both companies' current assets (cash, accounts receivable, inventory and short-term investments) outweigh their short-term liabilities. Chart.
Table of Contents
The Cash Flow Statement - UPS
Cash Flow Statement - FedEx
Internal Events - UPS
Internal Events - FedEx
Revenue and Net Income
Financial Analysis Ratios
Discussion
From the Paper "The Income Statements generated by these organizations also help any outsider gain insight into these organizations' revenue and net income statistics. United Parcel Service Inc. conducts its financial statements through a calendar year, starting on January 1 and ending on December 31. Over the last couple of years, the company's revenue has increased by $5.31 billion. December 31, 2002, finished with an amount of $31,272,000,000 in total revenue, followed by $33,485,000,000 on December 31, 2003. The most recent revenue is of $36,582,000,000 for the end of last year, December 31, 2004. It would be extremely welcoming for UPS to maintain all of its revenue; however, there are other expenses and costs that the organization must pay accordingly, which leads to the anticipated number of Net Income. UPS' Net Income continues to grow along with its revenue. On the December 31, 2002, UPS' books show a net income of $3,182,000,000."
