...TABLE OF CONTENTS - CHAPTER 3 I. CHAPTER 3 – RESPONSIBILITIES OF FINANCIAL MANAGEMENT 2 II. PERTINENT POLICIES 2 III. INTERNAL CONTROL 2 A. Overview of Internal Control 3 B. On-the-Job Application of Internal Controls 4 1. Records Management 4 2. Source Documents: Organization and Filing 5 3. Develop Departmental Procedures for Each Financial Process 7 4. Detailed Procedures for Cash Handling 10 5. Perform a Series of Daily, Weekly, Monthly, and Quarterly Tasks 10 6. Provide Regular Reporting to Management 14 7. Know Pertinent Campus Policies, Procedures, Regulations and Resources 14 CHAPTER 3 – RESPONSIBILITIES OF FINANCIAL MANAGEMENT The purpose of this chapter of The Guide is to provide information about administering departmental finances. This section notes significant policies and procedures, provides an overview of internal control, gives suggestions for getting organized and ready to work, and provides a checklist of periodic tasks to complete. PERTINENT POLICIES As noted in Chapter 2 of The Guide, departmental financial management must be done in accordance with University of Colorado and Boulder campus policies. The following three policies are of critical importance: ▪ Fiscal Roles and Responsibilities ▪ Program Management and Fiscal Control Responsibility ▪ Fiscal Code of Ethics The Fiscal Roles and Responsibilities Policy establishes...
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...Assignment 3: Demand and Supply How are the Laws of Supply and Demand illustrated in this graph? Explain your answers. The graph shows the basic laws of supply and demand. It does not show any factors that can or will control or influence what happens to the demand of computers. This graph shows that as the price of computer increases the demand for the computer decreases and supply of computers increase. The prices of the computer would be a determinant in this case. As the price of the computer decreased, the demand for the product also increased, but the supply of the product also goes down. What is the equilibrium price and quantity in this market? The equilibrium price is $125 and the equilibrium quantity is 1,750. Suppose the government imposes a special tax on these computers. Describe what would happen in this market in terms of the supply and demand curve. Taxes reduce both demand and supply and increases the equilibrium cost to a price higher than it would be without the tax and also decreases the amount that is wanted by the consumer that is lower without the tax. If a buyer has the option to buy an item that is equal to the item that has tax added, they will more likely purchase the product for a cheaper price. Assume that the government imposes a price floor of $150 in the computer market. What would happen in this market? If the government enforced a price floor of $150 on the E-Books a few things might normal, and there could be a surplus of...
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...Statement of Cash Flows 2011-12 Sales $15,444,000 100.0% COGS 10,884,000 70.5% CF Operating Activities 429,760 Other expenses 1,845,600 12.0% Net Income (2012) 618,120 2 Depreciation 504,000 3.3% Depreciation (2012 IS) 665,000 2 EBIT 2,210,400 14.3% Change in A/R (728,800) Interest 277,800 1.8% Change in inventory (321,260) 2 Taxable income 1,932,600 12.5% Change in payables 196,700 2 Taxes (40%) 773,040 5.0% Net income 1,159,560 7.5% CF Investing Activities (2,178,400) Change in net capital spending (2,178,400) Dividends 347,868 Add to RE 811,692 CF Financing Activities 1,532,840 Dividends paid (2012) (375,000) 2 Current Assets % Change in notes payable 2,911,840 2 Cash 280,800 2.8% Change in long term debt (1,004,000) 2 Accounts rec. 505,200 5.0% Change in common stock - 2 Inventory 566,400 5.6% Total CA 1,352,400 13.5% Actual Calculated Fixed assets Beginning Cash $280,800 $280,800 Net PP&E 8,673,600 86.5% +/- CF 2011 (215,800) (215,800) Total Assets 10,026,000 100.0% = Ending Cash 65,000 $65,000 Current Liabilities Accounts Payable 596,400 5.9% Notes Payable 1,207,200 12.0% Total CL 1,803,600 18.0% Long-term debt 3,114,000 31.1% - Shareholder Equity Common stock 120,000 1.2% Retained earnings 4,988,400 49...
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...МИНИСТЕРСТВО ОБРАЗОВАНИЯ РОССИЙСКОЙ ФЕДЕРАЦИИ ТЮМЕНСКИЙ ГОСУДАРСТВЕННЫЙ УНИВЕРСИТЕТ Институт дополнительного профессионального образования Терехова С.А. Финансовый менеджмент Методический указания к контрольной (самостоятельной) работе для слушателей специальностей 0604000 - Финансы и кредит, 0605000- Бухгалтерский учет, анализ и аудит. г. Тюмень, 2006 год Финансовый менеджмент: Методический указания к контрольной работе. Тюмень: Тюменский государственный университет, 2006. Составитель: Терехова С.А., к.э.н., проф. Рецензент: Жукова С.С., зав. кафедрой Финансового денежного обращения и кредита, ТюмГУ, к.э.н., доц. Шилова Л.Ф., зав. кафедрой Бух.учета и АХД, ТюмГУ, к.э.н., доц. СОДЕРЖАНИЕ Введение………………………………………………………………………….3 1. Содержание и пояснения к заданиям ……………………………………5 2. Задания и методические рекомендации……………………………………6 3. Требования к оформлению контрольной работы………………………..11 4. Приложения…………………………………………………………………..12 5. Литература……………………………………………………………………28 ВВЕДЕНИЕ Финансовый менеджмент – искусство управления финансами, денежным потоком организации - уверенно входит в отечественную практику хозяйствования, используя богатый арсенал методов, накопленный рыночной экономикой. Отечественный финансовый менеджмент характеризуется высоким динамизмом осваиваемых методов...
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...As best you can, comment on yur organization's application of the Corporate Financial Systems depicted in Figures I and IV of Assesing a Firm's Future Financial Health. Do the general principles, if not the exact steps, seem to be evidence? If so, which step(s) seem to be the strongest at your organization? Which step(s) have the most room for improvement? If the principles aren't in place, which step(s) do you believe are most crucial for your organization to implement? What specific problems exist because the principles are missing? How could you influnce the decision-makers at work that the principles should be in place? The steps that are strongest in our orginization are Mission, Managment Goals, Product-market choices, Outlook for sales through future revenues and cost structures, Investment in assests, Finances and Financial planning. We have a clear Mission, that is, to better serve our customers with a commpetivie edge while contiuing to grow our business to be fincialy stabile over the years to come. Management goals are set by each market type within our business. Each market within our business consits of Party, Construction (Big Equipment) and (Home owner), L.P. Gas and Storage including outside stroage. These goals are set on how they are going to grow through past proformance. And where that market is headed in the future and the risk that it carries to grow that market within our orginization. Along with the profit that it is...
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...Financial Managment – First Investments, Inc.: Analysis of Financial Statements Team 4: Nathalie Strookman, Dieter Wolfram, Demis Busropan Background Problem Definition The 1994 Basic Industries annual report shows a decline in the return on owners’ equity. This has got the portfolio people worried. An analysis has to be made of the way the company has achieved its return on equity over the last 10 years. The focus should especially be on the 1993-1994 period and the quality of the returns on equity of 1985 and 1994 should be compared, as well as other key financial ratios. By doing these financial analysis we hope to find out why the return on shareholders’ equity is varying in time. {draw:frame} {draw:frame} {draw:frame} Results {draw:frame} {draw:frame} {draw:frame} Analysis In order to analyze the company’s financial performance, we make use of financial ratios; leverage ratios to show how heavily the company is in debt; liquidity ratios how easy cash can become available; efficiency ratios to measure the productive use of the assets; profitability ratios to measure the return on investments. This is done for the period 1985-1994 where possible, and the total analysis can be found in the added excel file. 1985-1994 {draw:frame} If the operating profit margin increases than every sales gives you more money which results in a higher return on equity. If the asset turnover increases, more sales are generated for every unit of asset and the...
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...2. Repay debt holders. (359,800+10000000)-(500,000-720,000)= 1139800 3. Pay dividends to debtholders. 250,000*.220=55,000 4. Repurchase stock from shareholders. 460,000-1680936=1220936 5. Buy short-term investments. 71,632-20,000=51,632 4. For 2011 Find the Following- Current Ratio: current assets/current liabilities = 2680112/1039800 = 2.6 Debt Ratio: liabilities/assets = 1539800/3516952 = .44 Profit Margin on Sales: Income/sales = 253,584/7035600 = 0.036 Return on Total Assets: 235,584/3,516,952 = 0.072 Price/earnings: 12.17/1.01 = 12.049 Earnings per Share: net income/# of shares outstanding = 253,584/250,000 = 1.014 Financial Analysis Liquidity Calculation Ratio Avg Comment Current 2680112/1039800 = 2.6 2.6 4.2 poor Quick 2680112-1716480/1039800 = 0.92 0.92 2.1 poor Asset Managment Inventory Turnover 7035600/1716480 = 4.098 4.098 9.0 poor Days Sales Outstanding 878000/(7035600/365) = 45.55 45.55 36.0 poor Fixed Assets Turnover 7035600/836840 = 8.40 8.40 3.0 high-risky Total Assets Turnover 7035600/3516952 = 2.0 2.0 1.8...
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...researching. Taking into account the efforts and allowances spilled by AMT on its research and development aspect, and in invading new markets, it is not unexpected that it had gained an extraordinary growth and rapid expansion of its sales force for just a few years of being established. Like any other companies who were in their infancy/growth stage, it is a normal thing to put the best shoe forward in order to gain an A+ mark. But the aggressiveness nature of the decisions made by Peter Haskins, president of the AMT, had, to the conclusion of some lenders, contributed to several tribulations that impede the continuous growth of the company. Though AMT had gained extraordinary growth through their well done researches, it tends to risk its financial aspect by exhausting too much fund just to develop and produce its product. Its mismanagement of its assets had made potential creditors to deny its loan requests. These facts had led to the perfection of this study. It aimed to analyze the problems faced by the company, the cause of these problems and how the company will trounce these problems. II. EXECUTIVE SUMMARY Advance Medical Technology Corporation (AMT) developed, manufactured and sold scientific medical instruments, needles, and catheters that allowed rapid and less invasive access to a number of different organs and vessels. These products represented an alternative to traditional surgical procedures and allowed an analysis or corrective treatment with less risk and trauma...
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...ACCOUNTINGS ASSIGNMENT 02 Rochana Sandaruwan ID = KARSD21 PART A Financial Ratio | How to calculate it | 2011 | 2012 | Current Ratio | Current Assets ÷ Current Liabilities | 28000 = 7 4000 | 42000 = 2.33 18000 | Quick Ratio | Quick Assets ÷ Current Liabilities | 16000 = 4 4000 | 20000 = 1.11 18000 | Account Receivable Turnover | Net Sales ÷ Average Debtors | 40000 = 5 8000 | 60000 = 3 20000 | Inventory Turnover | Cost of Goods Sold ÷ Average Inventory | 26000 =2.36 {(10000+12000)/2)} | 42000 =2.47 {(12000+22000)/2)} | Debt Ratio | Total Liabilities ÷ Shareholders Equity | 4000 = 2.5 8000 | 4000 = 2.5 8000 | Net Profit Ratio | Net Profit x100 Sales | 6000 x100 =15% 40000 | 4000 x100 =6.67% 60000 | Return on Owner’s Capital | Net Profit after Tax – Preferance dividend x100 Equity share | 6000 x100 = 15% 40000 | 4000 x100 = 8.33% 48000 | The current asset ratio is one commonly used tool that measures the liquidity and financial position of a company. This ratio is used to determine how well a company is able to pay its short- term liabilities.A ratio of two or higher is considered good. Companies with ratios of two or higher are often more likely to have fewer issues paying their debts...
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...Levi’s Personal Pair Analysis Introduction: This Case presents Levi’s Strauss and Co analysis. In the beginning of 1990s Levi’s stratus was a market leader in women’s jeans But gradually its market share started shaking off, whereas market research Shows only 24% of the women is satisfied with their purchase of the standard Jeans. Levi’s used to work on push market strategy and now trend was changing and Market was demanding a better fit with more colors and styles. Operating with only 19 retail store, that was not an enough network linking Levi’s Factory to their customers to get feedback of their customers. And the whole supply chain was too slow . Though Strauss was truculent to invest for the improving of the their system to Enhance the production and supply chain capability and reduce the delay which Was about 8 months from ordering to selling. Strauss started an experiment in its 4 retails store with collaboration of custom Clothing Technology Corporation, software firm based in Massachusetts US. This helped Strauss to get custom measurement of their customers and sort out The best fittings for their customers and has bar code sewn for reordering same Fitting of personal pair™. 1) Calculation of PRETAX ROIC FOR BOTH CHANNELS 1. PRETAX ROIC FOR BOTH OF THE CHANNELS. 1) Wholesaler Channel PRETAX ROIC = Pre Tax Operating Profit /Total Investment PRETAX ROIC = 20% 2) Original Levi’s Store PRETAX ROIC...
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...thousands of stores and millions of associates. Ethics and integrity have been continuous throughout their transformation. Ethics and integrity have defined the company and how they treat their associates, the suppliers, and their patrons. The values that guide Wal-Mart’s decision and leadership are; respect for individuals, service to the customer, and striving for excellence. This paper can discuss Wal-Mart’s responsibility in regard to the role of ethics and compliance as it relates to their financial situation. An explanation of the measures used to ensure ethical behavior and recognize the methods used to conform to the United States Securities and Exchange Commission’s (SEC) regulations. The past two years of Wal-Mart’s annual reports will be used to assess the company’s financial operations and in calculating their financial ratios. The organization’s trends and their financial well-being will be determined by their financial ratios. The role of ethics and compliance: Wal-Mart has three basic components to the role of ethics beliefs and they are “Respect for the individual” which means you should treat everyone with respect and to show consideration for any interaction with customers and co-workers, be courteously and kind at all times. “Service to the Customer” being able to supply the customer with their wants and needs. Welcoming every customer with a smile and provide floor presence that welcome each customer. “Striving for Excellence”...
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...Financial Managment – First Investments, Inc.: Analysis of Financial Statements Team 4: Nathalie Strookman, Dieter Wolfram, Demis Busropan Background Problem Definition The 1994 Basic Industries annual report shows a decline in the return on owners’ equity. This has got the portfolio people worried. An analysis has to be made of the way the company has achieved its return on equity over the last 10 years. The focus should especially be on the 1993-1994 period and the quality of the returns on equity of 1985 and 1994 should be compared, as well as other key financial ratios. By doing these financial analysis we hope to find out why the return on shareholders’ equity is varying in time. {draw:frame} {draw:frame} {draw:frame} Results {draw:frame} {draw:frame} {draw:frame} Analysis In order to analyze the company’s financial performance, we make use of financial ratios; leverage ratios to show how heavily the company is in debt; liquidity ratios how easy cash can become available; efficiency ratios to measure the productive use of the assets; profitability ratios to measure the return on investments. This is done for the period 1985-1994 where possible, and the total analysis can be found in the added excel file. 1985-1994 {draw:frame} If the operating profit margin increases than every sales gives you more money which results in a higher return on equity. If the asset turnover increases, more sales are generated for every unit of asset and the...
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...A period of economic difficulty that consumers and markets are experiencing world-widely is known as global financial crisis (BusinessDictionary, 2015). It occurs when there is an increase in asymmetric information coming from disruptions in financial system that is interrupting the funds from channelling efficiently between savers and households as well as preventing firms from having productive investment opportunities (Mishkin and Eakins, 2012, pp. 204). The recent global financial crisis began in the year of 2007 and the intensity increased in the subsequent year. Global financial crisis in 2007 happened as result of a number of factors such as government mandated subprime lending, imprudent mortgage lending, housing bubble, securitization and a few other more factors, which will be discussed. Causes The government mandated subprime lending has contributed to the financial crisis by promoting affordable housing under Community Reinvestment Act (CRA) as well as Fannie Mae and Freddie Mac. Through affordable housing, banks were encouraged to participate in imprudent mortgage lending as mandated by the federal in order to help low-income borrowers, which imprudent mortgage lending is another cause that contributed to the global financial crisis (Jickling, 2009). As a result of mortgage lending, low-income families are able to purchase houses that they are not be able to afford to purchase without the policy. The loans require low or no down payments and limited documentation...
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...CONTENTS Page No 1. Introduction 2 2. Company Background 3 3. Asset Management and Leverage 5 4. Classification of Ratios 6 5. Ratio Analysis of the Performance of Air Asia and Malaysian Airlines System for the year 2011 7 6. Conclusion 11 Bibliography/Reference 13 QUESTION: Select any two listed companies of Bursa Malaysia from the Trading/Services sector and evaluate the companies’ asset management and leverage ratios using their financial statements for the year 2011 ANSWER 1. INTRODUCTION Malaysian Airlines System (MAS) and Air Asia are currently the two main airlines operating in Malaysia. These two companies are competing in the airline industry which is fiercely competitive. This is a very large and continuously growing industry giving the industry players the opportunity for immense financial gains. The different categories in the airline industry usually comprise of: International Category which has airplanes with adequate seating capacity that makes it possible for passengers to travel to any destination in the world. The earnings in this category gross over a billion dollars. National Category which has a lesser seating capacity and the gross revenues are less than one billion dollars. Regional Category with planes that operate short-haul flights. Cargo Category which has planes transporting goods. The airline industry is characterized by its large...
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...Financial Analysis & Management Assignments 1. Discuss the extent to which the legal and professional regulatory framework of accounting ensures that corporate reports provide reliable, relevant, objective, and comparable information to users. 2. Critically evaluate the importance of discounted cash flow techniques in investment decisions. Illustrate your answer with your examples. 3. Discuss the relative importance profitability and liquidity for the survival of a business and explain how the working capital can be managed to minimise the risk of liquidity problems. Shahrzad Parhizgar Student Number: B0229JTJT1112 February 2013 Lecturer:PalanAmbikai Word Count: 2980 Financial Analysis & Management Assignments February 1, 2013 Table of Content LEGAL & PROFESSIONAL REGULATORY FRAMEWORKS ENSURING RELIABLE, RELEVANT, OBJECTIVE, AND COMPARABLE DATA ........................................................................................................................................ 3 INTRODUCTION ....................................................................................................................................................... 3 FINANCIAL INFORMATION USERS ................................................................................................................................ 3 LEGAL AND PROFESSIONAL REGULATORY FRAMEWORKS ................................................................................................. 4 FINANCIAL REPORTS...
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