Cash Flow Essays

Factors Affecting Trade Discount and Interest Rates

Cash flow must be monitored and improved in order for a business to survive, and even maximize its profit. It is a must that considerations for this kind of maintenance be studied in order to understand the structure of the business and how it is affected by external and internal factors. Banks, for example, are very sensitive to many factors that may affect their transactions locally and internationally. Discount rates and interest rates are taken for implementation to make bank…

Read >>

Capital Budgeting

On this paper the reader will be able to find the rationale in the analysis of a specific capital budgeting case study. Definitions along with explanations related to capital budgeting such as Internal Rate of Return (IRR) and Net Present Value (NPV) will be provided and debriefed. It is extremely relevant to mention that capital budgeting allows the companies to analyze one or more projects to decide eventually which project or piece of equipment would be most profitable or suitable…

Read >>

Wiley Plus

1. Transactions for Mehta Company for the month of May are presented below. Prepare journal entries for each of these transactions. 2. On July 1, 2012, Crowe Co. pays $19,628 to Zubin Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Crowe Co. journalize the entry on July 1 and the adjusting entry on December 31. 3. Dresser Company’s weekly payroll, paid on Fridays, totals $6,600. Employees work a 5-day week. Prepare Dresser’s…

Read >>

Bullok Gold Mining Case

Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company’s geologist, has just finished his analysis of the mine site. He has estimated that the mine would be productive for eight years, after which the gold would be completely mined. Dan had taken an estimate of the gold deposits to Alma Garrett, the company’s financial officer. Alma has also been asked by Seth to perform an analysis of the…

Read >>

Worldwide Paper Case

Blue Ridge Mill currently purchases shortwood from a nearby competing mill for pulp production. Bob Prescott, the controller for Blue Ridge Mill, is considering the addition of a new on-site longwood woodyard. The new woodyard would have two main benefits including the ability to eliminate the need to buy shortwood from an outside source and the opportunity to sell shortwood on the open market as a new market for Worldwide Paper Company. The new woodyard would allow Blue Ride Mill…

Read >>

Determinants of Dividend Payout Ratio

Determinants of Dividend Payout-Ratio: A Study of Philippine Stock Exchange-Listed Banks, 2007-2011 Introduction Dividend policy is one of the most controversial subjects in finance literature and still ‘management always ponders about the dividend payment and also why investors need to pay attention on dividend. It is also a corporate profit that is paid out or considered as an income by the corporation to be distributed to its shareholders as a reward for investing. It is also considered as the sharing…

Read >>

Cash Flow Analysis

1. Who are the stakeholders in this situation? Describe and explain. The ten stockholders would be their stakeholders. The stakeholders are a group but without its support the organization would cease to exist. And they wanted to ensure that their stockholders received their dividends, to keep their interest in the company. 2. Was there anything unethical about the president’s actions? Was there anything unethical about the controller’s actions? Explain. The president had seen the problem and addressed it. But the…

Read >>

Final Project Aat

1.TERMS OF REFERENCE 1.1 The report has been prepared to cover the requirements of the AAT Unit “Internal Control and Accounting Systems”. 1.2 The objectives of the report are to analyse the accounting function at Inkwell Ltd and to identify any weaknesses, so that recommendations for the implementation of a new and improved system can be put in place, in order to minimise errors and to prevent fraud. 2. EXECUTIVE SUMMARY 2.1 The aim of the report is to analyse…

Read >>

Working Capital Simulation_ Managing Growth Assignment

Sunflower Nutraceutical (SNC) is a distributor in the Miami, Florida area is a privately owned company. Sunflower Nutraceutical is a business that started as a direct –to-consumer distributor and retailer in products related to supplements that include vitamins, minerals and herbs for women, and all ages. This company has successfully and ambitiously expanded their business and SNC continues to operate and desires to expand their business to plans to operate and expand their market and product line. SNC has continue…

Read >>

Reeby Sports

George Reeby proposes to sell 90,000 shares, or about 22%, of his company. How much are those shares worth? We have to value the company using George’s forecasts. The forecasts presented in Tables 4.10 and 4.11 do not show free cash flow and financing requirements. These are calculated in Table 1. Note that free cash flow for 2005 is -$2.3 million. But dividends are $2.0, so the company will need 2.3 + 2.0 = $4.3 million in outside equity financing….

Read >>

Background Caledonia Products

c. Why should Caledonia focus on project free cash flows as opposed to the accounting profits earned by the project when analyzing whether to undertake the project? Free cash flows are being focused on because it the amount that Caledonia will receive and they will be able to reinvest that amount. Caledonia should analyze the free cash flow so that they are able to see the real amount of value or what the cost may be. The marginal value from…

Read >>

Efficient Market

Q1. Efficient market is one in which stock prices fully reflect the information of a company, either positive or negative. If the information from a company is positive, investor will give a good response and the price of shares of this company will increase. Since the information is reflected in price at once, normal rate of return should only be obtained. Also the price that the firm received from issuing securities is the present value, and valuable financing opportunities are…

Read >>

Capital Budgeting Case

Your company is thinking about acquiring another corporation. You have two choices—the cost of each choice is $250,000. You cannot spend more than that, so acquiring both corporations is not an option. The following are your critical data: Corporation A Revenues = $100,000 in year one, increasing by 10% each year Expenses = $20,000 in year one, increasing by 15% each year Depreciation expense = $5,000 each year Tax rate = 25% Discount rate = 10% Corporation B Revenues =…

Read >>

Delta Beverage Case

Delta Beverage Group Delta Beverage is a bottler company which is an important part of the franchise system of PepsiCo, Inc. Over the years Delta Beverage has also become an important manufacturer of cans, bottles, PET and other packaging for other several brands. The concentrate and syrup for the soft drinks are bought from PepsiCo, where the prices are establishing annually by PepsiCo. Delta processes all the other raw materials which are needed to produce these soft drinks. One of…

Read >>

The Mba Decision

Mini Case – The MBA Decision 1. How does Ben’s age affect his decision to get an MBA? Ben’s age is a very important factor which can affect his decision to get an MBA degree. Firstly, Ben is now 28 years old and expects to work for 40 more years. So he has an expected work life of 68 years. So the earlier he gets an MBA, the better for him. For example: probably it won’t benefit him much if…

Read >>