...Procedure Cash Management Cash Management 1. DEFINITIONS............................................................................................................. 3 1.1. Cash Management ............................................................................................................................... 3 1.2. Cash Flow Analysis ............................................................................................................................. 3 2. SCOPE ....................................................................................................................... 3 3. TARGET/PURPOSE .................................................................................................. 3 3.1. Cash Management on plant/location level ........................................................................................3 3.2. Cash Management on group level ..................................................................................................... 3 4. CASH MANAGEMENT PROCESS ............................................................................ 4 4.1. Golden rule for cash and finance management at CO. ................................................................... 4 4.2. Cash Management Instruments ......................................................................................................... 4 4.3. Payment terms .............................................
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...An Assessment of Corporate Cash Management Practices Author(s): Lawrence J. Gitman, Edward A. Moses and I. Thomas White Source: Financial Management, Vol. 8, No. 1 (Spring, 1979), pp. 32-41 Published by: Wiley on behalf of the Financial Management Association International Stable URL: http://www.jstor.org/stable/3665408 Accessed: 26-04-2016 11:33 UTC Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at http://about.jstor.org/terms JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. Financial Management Association International, Wiley are collaborating with JSTOR to digitize, preserve and extend access to Financial Management This content downloaded from 202.79.21.43 on Tue, 26 Apr 2016 11:33:11 UTC All use subject to http://about.jstor.org/terms An Assessment of Corporate Cash Management Practices Lawrence J. Gitman, Edward A. Moses, and I. Thomas White Lawrence J. Gitman and Edward A. Moses are Associate Professors of Finance in the College of Business Administration at the University of Tulsa. I. Thomas White is a mechanical engineer with Mobil Pipeline Company in Dallas, Texas. The cost of preparation, distribution, and other clerical...
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...[pic] [pic] [pic] [pic] [pic] SESSION 2007-08 Submitted by:- Name :-Nachiketa Sahu Class :- +3 3rd year ( com) Specially Guided by Class Roll No :- 05DC018 Dr. N.K Swain Exam Roll No :-05C50023 Dept. of commerce, Balasore. DECLARATION I Nachiketa Sahu do here by declared that the project report entitled “A STUDY ON PROFITABILITY RATIO ANNALYSIS OF ORI PLAST ” submitted by me to FM (AUTO)COLLEGE ,BALASORE impartial fulfillment of the requirement for +3 3rd year (com) this project is original genuine. I also declared that the project report submitted by me is of my own and it is not submitted by any other institution including the university at any time before. Name:-Nachiketa Sahu Class:-+3 3rd year commerce Date :- Class Roll No :-05DC0018 Place:-Balasore Exam Roll No:- 05C5OO23 CERTIFICATE This is to certify that Nachiketa Sahu of +3rd year commerce bearing exam Roll No:-05C5OO23 for the session of 2007-08 has submitted...
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...A PROJECT ON STUDY OF CASH MANAGEMENT AT STANDARD CHARTERED BANK SUBMITTED IN PARTIAL FULFILLMENT OF BACHELORS OF MANAGEMENT STUDIES L S RAHEJA COLLEGE OF ARTS AND COMMERCE UNIVERSITY OF MUMBAI ACADEMIC YEAR 2010-2011 SUBMITTED BY: BINAY ROY PROJECT GUIDE: PROF. NAVEEN ROHATGI DECLARATION This is to certify that the project report ‘Study of Cash management at Standard Chartered Bank’ is submitted by me in partial fulfillment of the requirement of Bachelors of Management Studies in the academic year 2010-2011. The information it comprises of is true and original as per my research and observation. ----------------------------- Signature of the Student (Name of the Student) CERTIFICATE This is to certify that Mr. Binay Roy has completed the project ‘Study of cash management at standered chartered bank’ under the guidance of Prof. Naveen Rohatgi in the academic year 2010-2011 and has submitted the same to the University of Mumbai in partial fulfillment of the requirement of the Bachelors of Management Studies courses. -------------------------------- ---------------------------------- Signature of the Principal Signature of the Project Guide (Dr. Ms. M.B.Madlani) (Prof. Naveen Rohatgi) ------------------------------------------ Signature of the External Examiner. ACKNOWLEDGEMENT I would...
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...The statement of cash flow's primary purpose is to provide information regarding a company's cash inflows and outflows during a specified accounting period. This paper will focus more on how cash flow is helpful to external users. The statement of cash flow complements the income statement and the balance sheet. When credit decisions are made, many factors must be assessed. According to FASB (SFAS-95, paragraph 5) the information on actual cash flows is useful to help creditors, investors, and other external parties asses (1) the ability of an enterprise to generate positive future net cash flows, meet its obligations, and pay dividends; (2) the needs for external financing; (3) the reasons for the differences between cash flow from operating activities and net income (or change in net assets); and (4) the effects on financial position of cash and non-cash investing and financing activities. Cash flows are classified as operating, investing, or financing activities. Operating activities relates to company’s primary revenue generating activities such as cash generated from the sale of goods and cash paid from merchandise. Investing activities includes lending money and collecting on loans related to noncurrent assets. For example, cash generated from the sale of land. Financing activities include borrowing and repaying money from creditors related to noncurrent liabilities and owners’ equity. The goal is for company to have a positive cash flow from operating. This is the area...
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...Cash management is a need common to both large and small businesses alike. In its simplest terms, cash management is the assurance that today's receivables plus today's account balances exceed today's payables. Failure to practice this business management process guarantees bankruptcy. Every large organization has a cash management group, sometimes called the treasury. This group's function includes management of such items as investments and borrowing in addition to the organization's daily cash flow. In small to medium businesses (SMBs), usually the chief financial officer (CFO), president, or owner performs the task of cash management. Regardless of a company's size, the important thing is that cash management is practiced on a regular basis—at least weekly—and with sufficient attention to details. In difficult times, when liquidity is "tight" (at a minimum), it should be performed daily. Crucial to organizations' successful cash management are the deals they make with their financial institutions for short-term placements and for borrowing funds. Unlike in other countries, in the United States, a bank account that is credited with deposits does not begin to earn deposit interest until three business days have passed. Furthermore, an American business account specifically may not be overdrawn, which necessitates cash management to be the most important activity of a business's financial management. For all companies—and in particular, public traded companies—major...
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...Chapter 4 Cash and Internal Controls Answer true-or-false questions about occupational fraud (LO1) E4-1 Below are several statements about occupational fraud. 1. For most large companies, occupational fraud is minimal and internal controls procedures are unnecessary. 2. Managers have a variety of reasons for manipulating the numbers in financial statements, such as maximizing their compensation, increasing the company’s stock price, and preserving their jobs. 3. Internal control procedures include formal policies and procedures related to (1) safeguarding the company’s assets and (2) improving the accuracy and reliability of accounting information. 4. “Cooking the books” is a phrase used by accountants to indicate the preparation of financial statements that are free of manipulation. 5. Most occupational fraud cases involve misuse of the company’s resources. 6. Common types of financial statement fraud include creating fictitious revenues from a phantom customer, improperly valuing assets, hiding liabilities, and mismatching revenues and expenses. Required: State whether the answer to each of the statements is true or false. Answer true-or-false questions about the Sarbanes-Oxley Act (LO1) E4-2 Below are several statements about the Sarbanes-Oxley Act (SOX). 1. SOX represents legislation passed in response to several accounting scandals in the early 2000s. 2. The requirements outlined in SOX apply only to those companies expected to have weak internal...
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...CASH FLOW Projection Year 1 April Beginning Cash Balance Cash Inflows (Income): Cash Collections Credit Collections Other: May 0.00 June 0.00 July 0.00 Aug 0.00 Sept 0.00 Oct 0.00 Nov 0.00 Dec 0.00 Jan 0.00 Feb 0.00 Mar 0.00 TOTALS Total Cash Inflows Available Cash Balance Cash Outflows (Expenses): Advertising Bank Service Charges Insurance Interest Inventory Purchases Maintenance & Repairs Operating Supplies Payroll Sales Commissions Professional Fees Rent Office Supplies Permits & Licenses Utilities & Telephone Travel Other: Subtotal Other Cash Out Flows: Capital Purchases Loan Principal Other: Subtotal Total Cash Outflows Ending Cash Balance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Page 1...
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...Cash Flow Greg George December 7, 2013 Cash flow statements are important for every business. Cash flow statements tell investors, banks, and the company’s management what is going on with the company’s cash. Investors want to know if a company can and if they have paid dividends and a cash flow statement can provide this kind of information. When banks look at giving a loan to a company they look at a lot of different statements and on of them is the cash flow statement. From a cash flow statement banks can determine if a company is handling there cash intake and out flow correctly. A cash flow statement can also show if a company is doing something shady with their money or taking unnecessary risks that would put investors and bank at risk of not getting their investment back. Cash flow statements are classified into three sections; operating, investing, and financing activities. Each section tells a different story inside the cash flow statement. The cash flow statement is separated into three sections so that investors and banks can get a better understanding of each part of the cash flow statement. Each section stands for the following; “Operating activities include the cash effects of transactions that create revenues and expenses. They thus enter into the determination of net income. Investing activities include (a) acquiring and disposing of investments and property, plant, and equipment, and (b) lending money and collecting the loans. Financing activities...
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...Chapter 12 Cash Flow Estimation and Risk Analysis LEARNING OBJECTIVES After reading this chapter, students should be able to: • Discuss difficulties and relevant considerations in estimating net cash flows, and explain the four major ways that project cash flow differs from accounting income. • Define the following terms: relevant cash flow, incremental cash flow, sunk cost, opportunity cost, externalities, and cannibalization. • Identify the three categories to which incremental cash flows can be classified. • Analyze an expansion project and make a decision whether the project should be accepted on the basis of standard capital budgeting techniques. • Explain three reasons why corporate risk is important even if a firm’s stockholders are well diversified. • Identify two reasons why stand-alone risk is important. • Demonstrate sensitivity and scenario analyses and explain Monte Carlo simulation. • Discuss the two methods used to incorporate risk into capital budgeting decisions. • List four different types of embedded real options, explain what a decision tree is, and provide an example of one. • List the steps a firm goes through when establishing its optimal capital budget in practice. LECTURE SUGGESTIONS This chapter develops procedures for estimating and identifying relevant cash flows, discusses techniques used to measure and take account of project risk, introduces the concept of real options, and discusses general...
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...Topic: AN ANALYSIS ON CASH MANAGEMENT AND ITS OPERATING CYCLE AT MARRIOTT HOTEL Submitted by SHRUTHI.H USN:1BF12MBA36 In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Mrs.Shaheen Shariff (Internal guide) (External guide) To Visvesvaraya Technological University Belgaum Department Of Management Studies BMS College Of Engineering, Bull Temple Road Bangalore-560 019 INTRODUCTION: Cash management is a broad term that refers to the collection, concentration and disbursement of cash. It encompasses a company’s level of liquidity, its management of cash balance, and its short-term investment strategies. In some ways, managing cash flow is the most important job of business managers. A company should aim at maximizing the wealth of its shareholders. In its endeavor to do so, a firm should earn sufficient return from its operation. Earning a steady amount of profit requires successful sales activity. The firm has to invest enough funds in current asset for generating sales. Current asset are needed because sales do not convert into cash instantaneously. There is always an operating cycle involved in the conversion of sales into cash. OBJECTIVES: * To analyze the Cash management and to determine efficiency in cash, inventories, debtors and creditors...
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...“Financial Accounting, sixth edition”, cash flow “permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners”. Analyzing cash flow enables one to understand what happened to cash and cash equivalents throughout a specific period – how to the beginning balance of cash become the ending balance. The statement classifies cash flow in three different categories; operating activities, investing activities, and financing activities. To better understand and prepare the statement manipulating the balance sheet equation is a must. Assets can be further broken down into cash/cash equivalents and noncash asset. It is important to note that any change in cash also results in a change of liabilities, stockholder’s equity or noncash assets. With all of this, the “new” equation follows, change in cash = change in liabilities + change in SE – change in noncash assets. Cash flows from operating activities relate directly to revenues and expenses on the income statement. Examples of cash inflow activities include cash received from customers, dividends and interest on investments. Examples of outflows would be salaries, wages and income taxes. There are two methods in which one can present operating activities on the statement. It is important to note that both methods will provide the same number. The first is the direct method. This method “reports components of cash flow as gross receipts and gross payment...
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...Cash Flow Assignment Companies are required to prepare a statement of cash flows (SCF) in their annual reports because it contains necessary information for external users, such as lenders and investors, who make economic decisions about the companies. It presents the sources and uses of cash and is a basis for cash flow analysis. Because it shows how much actual cash a company has generated, it presents if and how the company is able to pay for its operations and future growth. Companies produce and consume cash in different ways, so the cash flow statement is divided into three sections: cash flows from operations, financing and investing. Basically, the sections on operations and financing show how the company gets its cash, while the investing section shows how the company spends its cash. The cash flow statement is the newest of the three financial statements; companies have only been required to furnish investors with it since 1988. The cash flow statement is similar to the income statement, except that it dispenses with some of the abstract items found on the income statement (such as depreciation) and focuses on actual cash. Most of the information found on the cash flow statement is contained in either the income statement or the balance sheet, but here it is organized in such a way that it is difficult for companies to use accounting tricks to obscure the facts. The cash flow statement is broken down into three parts: Here you’ll find how much money the company...
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...CONCEPTS a. The statement of cash flows details the actual cash generated through a specific time period, usually for fiscal year ending 20XX, for example. The cash flow statement, specifically, identifies the actual cash flowing in and out of the company and reveals how a company spends its money. Conversely, the income statement is based on the accrual method of accounting and will contain revenue, for example, that has not been received or expenses that have not yet been paid. b. The two separate methods to prepare the statement of cash flows is the direct and indirect method. Weis Markets uses the indirect method of accounting due to the fact the company uses the accrual method of accounting and derives data from both the balance sheet and income statement. Most companies, public companies specifically, use the indirect method of accounting as most implement accrual accounting. Smaller companies on a cash basis would use the direct method for statement of cash flows. c. The three sections of the statement of cash flows is investing, operating, and financing activities. d. Operating activities pulls from items on the income statements. Investing activities reports the purchase and/or sale of investments and property, plant, and equipment on the balance sheet. Financing activities reports the issuance and repurchases of company stocks, bonds, and payments of dividends on the balance sheet. e. Cash equivalents are current, highly liquid assets that...
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...4/8/2011 Cash Flows Scribd Upload a Document Search Books, Presentations, Business, Academics... Search Documents Explore Documents Books - Fiction Books - Non-fiction Health & Medicine Brochures/Catalogs Government Docs How-To Guides/Manuals Magazines/Newspapers Recipes/Menus School Work + all categories Featured Recent People Authors Students Researchers Publishers Government & Nonprofits Businesses Musicians Artists & Designers Teachers + all categories Most Followed Popular Sign Up | Log In scribd.com/doc/22806908/Cash-Flows 1/48 4/8/2011 Cash Flows STATEMENT OF CASH FLOWS TRUE-FALSE STATEMENTS 1. The statement of cash flows is a required statement that must be prepared along with an income statement, balance sheet, and retained earnings statement. For external reporting, a company must prepare either an income statement or a statement of cash flows, but not both. A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions. A statement of cash flows indicates the sources and uses of cash during a period. Operating activities include the cash effects of transactions that create revenues and expenses. In preparing a statement of cash flows, the issuance of debt should be reported separately from the retirement of debt. Noncash investing and financing activities must be reported in the body of a statement of cash flows. The statement of cash flows classifies cash receipts and payments...
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