Essays on Cash Flow

Introduction

The Small Business Administration. (2012) reports that 66% of businesses survive past the first two years of operation while only 50% survive past the first five years of operation. The Small Business Administration. (2012) also reports that these trends have endured over a long time. These findings prompt the question as to why small business are predisposed to fail. The purpose of this paper is to answer this question.

Discussion

Various reasons have been proposed to explain the failure of small businesses. Bates (2014) attributes the failure of small business to shortages in cash flow. This factor can be either ...

Company Profile

Revered as the biggest e-commerce website around the globe, Amazon Inc. is an American multinational entity engaged in e-commerce selling and cloud computing. Founded in the year 1994 by Jeff Bezos, the company is headquartered in Seattle, Washington DC. Amazon is the biggest e-retailer in terms of revenue and market capitalization. Beginning with the modest background of selling books and Blu-Ray DVD’s, Amazon today offers more than billion products and is now operating globally with presence in 19 countries. The company is listed on NASDAQ under the ticker symbol of AMZN and is also the constituent of NASDAQ ...

Introduction

The objective of this report is to perform the financial analysis of Next PLC and its competitor firm, Debenhams PLC. While both the stocks are listed on the London Stock Exchange(LSE), however, the report is solely attributed to uncover the fundamental analysis using the tool of financial ratios. Here, the attempt will be made using necessary ratios delineating profitability, efficiency, liquidity and gearing position of both the firms over the period of the past two years. The report shall finally be culminated discussing whether there is an improvement in the overall performance of each firm along with the ...

Introduction

Bank typology has grown more complex as more formerly niche banking services gain greater customer bases, encouraging different banks to shift focus from the traditional retail banking format to a more complex and specialized arrays of banking services. Moreover, large banks, particularly multinational companies, maintain their retail operations while serving non-retail accounts, such as businesses, investors, and purely online customers (Pritchard, 2016). Further, certain organizations offer banking-like services to its members, such as credit unions and savings and loans associations (S&Ls). Thus, to manage this typological complexity, this explorative paper covers only primary forms described in its most typical ...

Introduction

Leadership skills are critical in situations where a firm intends to conduct a succession of its leadership on a periodic basis. Leadership competencies are necessary skills in ensuring a smooth flow in leadership succession and in the development of the potential of the employees who will help an organization attain its vision (Delbridge, et al. 2007, p. 42). The current trend is characterized by seasoned managers and leaders who are retiring from their business ventures thereby creating a gap that needs to be filled through practical leadership training and mentorship. The aim of this paper is to examine the ...

Introduction

Earnings or Net Income is the single most important figure in a company’s financial statement for the average investor. Even a small fall in the reported earnings can result in the loss of millions of dollars in stock value and subjects company managements to scrutiny by investors and financial analysts. Corporate executives are under therefore under pressure to meet market expectations resulting in “earnings management”. Earnings manipulations can range from minor adjustments within the law and the accounting standards to the outright fraud of showing non-existing profits (Carruth, 2011). The Sarbanes- Oxley (SOX) Act of 2002 was enacted ...

JIT (Just-in-Time)

Just-in-Time refers to an important supply chain inventory management approach that suggests that all inventories must be made available during the time when the organization requires them without an extension or reduction of the deadline. JIT approach plays a critical role in managing lead times and reducing wastage caused by maintaining large and costly amounts of inventory (Coyle and Coyle, 2009). Moreover, organizations that implement the JIT inventory approach benefit from a balanced financial performance made possible through continuous cash flow and the presence of a stable supply chain. A production order provides details of the time of manufacturing, ...

Question 1: Why Cartwright Lumber Company needs cash

Despite the profitability of Cartwright Lumber Company, it still faces cash flow challenges. The financial statements indicate that the company has a low balance in its cash account. Profitability does not necessarily mean the firm has a stable cash flow. The income statements indicate that Cartwright Lumber has been profitable in each of the years from 2001. The net income has increased from $31,000 in 2001 to $44,000 in 2003. However, its cash balance has declined in each of the years. Large sales and profitability do not automatically translate into cash flows. The company has large balances ...

Cash flow statement

Note: the profit on the sale of fixed tangible assets (£100,000) was to be included in the income statement. I noticed that it was not included in the income statement.

Cash flows and retained earnings

Despite having retained earnings of £900,000 in the year ended 31st December, 2012, the company had a large bank overdraft. Retained earnings is the portion of the company’s profit that is not distributed. Profit considers that company’s revenues and expenses and does not consider whether the revenues or expenses are in cash. The cash flow statement includes cash items only. Thus, there is a difference ...

Financial Statement Analysis

Introduction and overview: The Apple Inc. is one of the leading companies in the production of smart phones and other latest hardware appliances. The main products of the Apple Inc. are Iphones, laptops, tablets and other small appliances. The Apple Inc. is listed on the major stock exchanges and they have a number of stores all over the world that are providing the best customer relation and increasing the sales. The Apple Inc. is performing business in the technology field and their main competitors are Samsung, HTC, Intel and Motorola. ("AAPL Income Statement | Balance Sheet | Cash Flow | Apple Inc. ...

Introduction

The direct method for forming a cash flow statement shows the main categories of total cash receipts and aggregate payments. The simplest way to present the components of received cash and cash payments is by arranging operating cash in such a way the operating cash reconciliations take a separate list. Also, the method has additional items under the operating cash flow section including. For instance, the IAS 7 displays the received dividends under the operating activities. The tables below show the direct cash flows for Aden Group Inc. and Consolidated Subsidiaries. The significant items in the direct cash flow ...

IT Technology Implementation

IT Technology Implementation Verizon is a leading provider of telecommunication services including wireless services and equipment and wire line services tapping the mass market, global enterprise, and global wholesales (Verizon, 2016). The company’s wireless services include retail connections and retail postpaid connections. Such include Verizon LTE, 4G LTE, fiber broadband services, FiOS, internet, and cable, and video telematics. Verizon also offers technology such as cloud and security products and interactive products such as video, music, and commerce (Verizon, 2016). The company exhibited a growing revenue and net income in the last five years in all of its business ...

Introduction

Cash management is a complex task though it seems to be an easy job. It is a highly complex as well as detail oriented task. It is very necessary to effectively manage the cash that the company have. If the company fails to manage the cash effectively, then there will be problem in meeting the financial obligations. Failing to manage the cash effectively will affect the company’s operating, financing and investing activities. In sum, the whole cash flow system will be affected. To facilitate the cash management, the company prepares the cash budget and implements the proper cash ...

Proposal for Business Plan Model for EMR Project

Proposal for Business Plan Model for EMR project Business Plans are documents that represent the specific details of a business covering three major aspects of a business – the concept, market for the intended product or service and the financial sources which are further broken down into summary of the plan, details of the business, marketing strategies, competition assessment, growth strategies, operations and management, and financial information (Burns Millyard, 2016). The primary purpose of the business plan is to demonstrate the objectives and direction of the business .Six typical of Business plans have been described as start-up, internal, strategic, feasibility, ...

Alpha Group

Consolidated financial statement of financial position for the year ended 31st December, 2015. Items £ (000) £ (000) Long-assets 2014 2015 Investment property, fair value 2500 2500 Property, plant, $ equipment 4324 4818 Total long-term assets 6824 7318 Current assets Cash 200 140 Cash equivalent 30 20 Trade receivables 1900 1200 Inventory 1000 1950 Dividends 100 190 Non-controlling interest share 120 150 Inventory, fair value cost to complete and sell 180 150 Total current assets 3530 3800 Total assets 10354 11118 Equity and liabilities Share capital 1500 1250 Retained earnings 1910 1000 Profits for the year 1000 1250 Dividends payables 100 190 ...

Investment Proposal for Cengage Learning, Inc.

Executive Summary

Purpose of the Paper The main purpose of the paper is to prepare an effective investment appraisal for Cengage Learning by using various financial management tools.

Overview of the Paper

The paper comprises of following material that can be seen in the overall paper. Investment appraisal techniques for introducing new product line Selection of two most common techniques Importance of techniques through literature Testing of Feasibility of new project Interpretation and conclusion on the analysis Techniques Used Results It is found from the above two analysis that the project is viable for the company and has potential to provide high return ...

Since the beginning of the industrial revolution, the world has found itself with more waste material from production than in any other time since time in memorial. The need to conserve the environment and ensure that these waste products do not deter the quality of resources, like air and soil has grown in the last two decades a great deal. More companies have come up with green initiatives to ensure that the waste material that is realised from consumer markets and producers are recycled. Recycling can be defined as the act of converting waste and otherwise harmful by-products to ...

Company Overview

GasLog Ltd. is an international firm engaged in managing, operating, and owner of the LNG carriers that includes a fully owned fleet of 22 carriers (Reuters). The company primarily operating in the liquefied natural gas market by providing worldwide maritime transportation including technical ship management services to five of the LNG carriers owned by third-party subsidiaries. The company’s corporate office is located at Rue Du Ga, Monaco, and currently trading in New York Stock Exchange under the ticker symbol GLOG after being incorporated in 2006 (Reuters). The discussion aims to analyze the GasLog Ltd. in terms of financial ...

Healthcare Providence to every citizen is the prime responsibility of medical care centers and other health departments working simultaneously. It is imperative for health care centers to educate and inform self-pay patients how to deal with insurance procedures. The medical institutes are devising strategies to collect cash from self-pay patients efficiently. Many of health care institutes help out self-pay patients to get insured but still many of self-pay patients do not get proper outlets or platforms to insure themselves. Healthcare centers like Sutter Healthcare are progressing and working on how to provide healthcare services to those who cannot afford ...

Value Chain

The objective of analyzing Monster’s value chain is to make a product that will become popular to its customers, which includes not only the production segment but also marketing and distribution (Horngren and Data, 2015). This is because products will eventually need to be discontinued due to changing customer preferences and product innovation from competitors. This means that the company’s core operations and its products must continuously evolve and this could be done using the value chain analysis tool. For an energy drink company like Monster, one of its main goals is to continuously adapt to the ...

Abstract

In healthcare financial management, health insurance contributes in determining the healthcare services. The fee schedule provides a list of charges reimbursed for service providers and suppliers. Center for Medicare services, CMS, uses the fee schedule to determine the facilities and non-facility in healthcare provisions. Physicians, ambulance and medical equipment services among others help in the determination of the fee schedule by Medicare Physician Fee Structure (MPFS). The study focuses on CPT code 99214-office visit as the reference in the service delivery by the center of Medicare services. The Medicare and Medicaid rates are essential in determination the fee schedule. ...

Chapter 1: Introduction 3

Chapter 2: Financial Performance and Position of TESCO 6 Chapter 3 Financial Management Policy 14 Chapter 4 Investment Strategy 18 Chapter 5 Valuation of TESCO 22 Chapter 6 Conclusion 26 Abstract The present report provides critical analysis of financial positioning of Tesco Plc. For this, the financial data has been gathered for past five years as well as its competitors to critically assess financial positioning of Tesco in the retail industry. The reports highlight the recent issues of Bretix which has significantly impacted economic conditions of the United Kingdom leading to declining the consumer confidence because of triggering inflation. ...

Business Life Cycle and Cash Flow

Business Life Cycle and Cash Flow

Some companies may have greater amount of longer term debt than others because such organizations may be taking measures to reduce volatility to unfavorable fluctuation in interest rates. This is because short-term interest rate tends to be more volatile than longer term debt . Companies at their startup stage may want to employ long-term debt for this reason and escape short-term debt burden. Some organizations use more long-term debt because all other sources of financing such as owners’ contributions may have been exploited while these entities have no sufficient retained earnings.

Relationship between Business Life Cycle and Debt Financing

At the first ...

Summary of Business Research

Over the years, financial institutions have faced a lot of risk including financial loss e.g. customer defaulting as well as the channeling of resources in projects or initiatives that make them loose their valuable resources and probably don’t add value to their organization (McNeil, Frey, & Embrechts, 2015). The effects of these risks have made the financial institutions fail to achieve their objectives and decrease in performance as well as maintain their market share. The end results show that the organization is not able to sustain its capabilities. The study is to investigate the effects of risk management on ...

Conforming to GAAP, Mandatory or Not

In true sense, GAAP represents a set of accounting procedures, standards and principles which an organization must follow to enhance clarity in financial statements in order for them to be useful to analysts. Conforming to GAAP is important because it facilitates consistency in recording and reporting financial statements. This way, investors and other market analysts will gain a clear understanding about any publicly traded company’s financial performance throughout and at end of certain financial accounting period. Conformance to GAAP provides investors and analysts with a guarantee about transparency and accuracy of financial records and statements. Generally, for the ...

This paper is a review of the book titled, Finance for nonfinancial managers: 24 lessons for understanding and evaluating financial health, by Katherine Wagner. The book will help managers from non-financial background to understand the languages and techniques used in finance. It can enhance the participation of these managers in financial matters and decision making. Complex financial lessons are presented in a form that could be understood by people from non-financial backgrounds. (Wagner, 2005) The first chapter of the book reviews basic terms used in recording, classifying and summarizing financial transactions. Knowing these terms will help the manager to ...

The majority of the successful people in business has embraced entrepreneurship. An entrepreneur is a person who can organize, develop while at the same time managing a business (Daley, 2013). He or she manages and mitigates the risks that come about with the type of business he or she is venturing into. An entrepreneur must be able to analyze the risks that come about with the business and make accurate decisions on what to do (Daley, 2013). Entrepreneurs help the economy to grow in that their profits contribute to the growth of the economy through the payment of taxes ( ...

Business process

Introduction This paper mainly talks about the business process of several businesses. It shows the main business process steps which should be used in order to generate profit in a business. It also gives solutions to different business problems so that entrepreneurs can have a clue on what steps to take in their business process in case of a certain problem.

Business Process

A business process is a set of activities or tasks that when completed they will accomplish the organizational goals (Dumas, La Rosa, Mendling & Reigers, 2013). It starts by characterizing the strides it takes to complete something, enhancing those ...

Introduction

A leveraged buyout (LBO) is the process through which a company is acquired by another one that gets a significant amount of capital from borrowed money. This act is a process that involves the buyer putting up the assets or expected profits of the newly acquired company as collateral to the financial institution that is giving out the loan (Haddad, Loualiche, Plosser, & National Bureau of Economic Research, 2016). This type of purchase carries significant risk for the buyer since the ratio of borrowed money to the invested money is usually 9: 1. The borrowed money accounts for eighty to ...

Internal Analysis of Encana

Internal Analysis of Encana

Introduction

The oil and gas industry in North America is currently experiencing challenges and transition stage. The increasing need for the environment-friendly and sustainable forms of energy is affecting the industry negatively as more governments and companies are encouraged to use energy with no or low carbon emission. More companies are now developing solar and wind energy and create vehicles that can rely on electricity rather than oil. Such growing trend in the energy sector resulted to lower demand of oil and gas particularly in the North America. Many oil and gas producing countries and companies ...

Leading PPF Response

As Stephen Oswald and his team assume the presidency of PPF Corporation, there are various key challenges facing him. One of the key challenges facing Oswald and his team is stopping the decline that is being witnessed at PPF in terms of sales, cash flow, and earnings. Considering that this decline in sales, cash flow, and earnings has been mainly caused by factors that are beyond the control of the organization, it is very challenging for Oswald. This decline has been fuelled by the September 11, 2001 incident, a downturn in the overall business cycle, and market share challenges ...

Describe the challenges faced by the company. What were the drivers for change to the supply chain?

The strong competition in the home appliance market, alongside customers’ increased demand sophistication, created the premises for Whirlpool to change its supply chain structure and organization. Looking at Porter’s five forces framework, the main forces that impacted Whirlpool’s supply chain redesign were the intensity of the industry rivalry and the bargaining power of consumers (Porter, 1985). As the case study informs, Whirlpool Corporation needed to transform its supply chain so that it could better satisfy its customers through improved quality of its products and services (“Whirlpool Supply Chain”, n.d.). With this market requirement, the company addressed the ...

Imperial Oil, founded in 1880 is a giant petroleum producing company, with its headquarters located in Calgary, Canada. It is the second largest integrated petroleum company in Canada and has registered a phenomenal growth since its inception. Its operations consist of exploring and producing oil, manufacturing and distributing petroleum products for energy sources, producing chemicals for industrial and domestic use through innovative and sustainable technology. ( Annual report, 2016) reports a cash generation of $22 bn from operations only during 2010-2015. Its performance can be evaluated from the growing dividends paid to its shareholders in last 21 consecutive years. Imperial ...

The process of collecting, investing and managing cash is known as cash management (Investopedia, 2010). Therefore, both corporate treasurers, and the business managers that are responsible for the entire management of cash will always seek for software that manages cash to increase efficiency and security. The efficient management of cash involves avoidance of insolvency, reduction of days in receivable accounts, selection of short-run investments, improvement of the financial performance of the company, and increasing the collection rates. All of these will help in cash managements to suit the management requirements. However, corporates are always facing some challenges regarding cash ...

There is a need to understand the term entrepreneurship before starting a business. For that reason, it is good to comprehend the entrepreneurship concept. Various economists have varying definition regarding entrepreneurship. Each entrepreneur has a wide vision on how he can succeed in a certain niche, meaning that they try to be innovative and capture a market that has not been captured before, to present a unique product or service. For that matter, entrepreneurs enhance the economy of a country by stabilizing sales and this increase per capital income, thereby shooting the economic status of a country. 2.0 Feasibility ...

Introduction

Multinational corporations across the world usually consolidate and present their operational results in financial and non-financial terms at the end of every term, usually a year. The financial aspect of reporting is supposed to comply with a clearly prescribed set of regulatory standards. The adoption of the International Financial Reporting Standards and GAAPs was meant to ensure that all compliant firms across the world produce financial statements that conform to the industry specific reporting frameworks and thus achieve a degree of uniformity in reporting. Different firms in operating in multiple locations operate under the strict guidelines of the specific ...

Business

Assignment 2

The financial statement for the last seven years of the company shows improvement in earnings or revenue of the company every year. From 2009-2016, the revenue of the company showed significant improvement. This fact is also evident from ratio analysis of the company. The profitability of the company has increased from 2009-2016, return on equity in percentage has shown improvement in seven years, and in the same manner return on invested capital in percentage has increased. Further, return on assets in percentage has also increased, and interest coverage has also shown remarkable improvement. Growth has also been ...

Internal Analysis

The process of internal analysis helps in identifying and evaluating an organization’s capabilities, resources, and core competencies. Internal Assessment The internal assessment has three main components that are resources, value chain, and core competencies. The assessment of these components helps in determining the internal strength of the company.

Resource Based Views

The resource-based view helps an organization to analyze the tangible and intangible resources that are available at the disposal of the firm and can be used. These resources are determined to develop a competitive advantage of an organization. The main aim of the model is to analyze the internal resources ...

MANAGEMENT ACCOUNTING

Standard Costs Used for Variance Analysis and Favourable/Unfavourable Terminologies with Suitable Examples 8

References 11

Management Accounting Differences between Management Accounting and Financial Accounting and the need for Investing in the latest Accounting Software Audience Served The basic difference between these two accounting fields is that the management accounting is concerned with providing information to internal stakeholders of an organisation such as the senior management, supervisors and employees. In contrast, financial accounting provides information about the financial health of the business to external stakeholders such as potential investors, shareholders (in case of a publicly traded company), tax authorities, lending institutions and ...

Chapter 9 questions

Question 1

The discounted cash flow valuation approach determines the value of a firm by discounting the expected cash flows from the firm (Voss & Larrabee, 2012). The value of any firm or asset should be equal to the present value of the cash flows expected from the firm or asset. Since the firm’s value is determined today, the least an investor would be willing to pay is the present value of the sum cash flows expected from the enterprise (Voss & Larrabee, 2012). Discounting is based on the time value if money. A firm will generate a stream of ...

at Rex Hill Winery

Management of Rex Hill Winery has been highly concerned about climate change. They have heard about the Solar Sprint campaign to go solar now before the federal tax credit expires at the end of 2016. They also knew about the other incentives available on installation of solar electrical systems. Considering environmental benefits, they desired to install a PV solar panel system at their property. However, they wished to take a final decision on the project based on a feasibility study. As Rex Hill’s consultant, I have been entrusted the job of preparation of a ...

Bose, S. (2016). Xerox (XRX) Misses on Q1 Earnings, Split Likely in 2016. Zacks. Web. 21 July 2016. Supriyo Bose (2016) discusses financial results of Xerox Corporation in first-quarter of 2016. Despite a little decline in earnings some years ago and a challenging macroeconomic environment, a company has improved its positions and productivity that resulted in adjusted earnings. The author informs about the current economic environment, financial result of Xerox, and provides points of view of experts on how to increase earnings.

Areas of Agreement

Supriyo Bose (2016) proclaims that Xerox has adopted a decision to provide a three-year strategic transformation program ...

About the report

The objective of this report is to assist One-World Investment Consortium, who is planning to invest £150 million in Thomas Cook PLC, a British global travel company listed on the London Stock Exchange under the ticker sign of ‘TCG’. We duly understand the impact of our professional recommendation on Consortium’s final decision making related to investment, and therefore, we intend to be comprehensive in the approach our analysis. As for the structure of this report, it will be a two-part report. In the first section of the report, we will evaluate the past 5 year(2007-2011) financial performance ...

Each of the items above is described in order to understand its nature thus identify the correct statement in which it should be posted as indicated. The goal is to ensure each balance is accurately and correctly posted in order to capture the true and fair value of the entity. The three financial statement created are summarized below. The data shows that the medical facility is operating at a surplus since the amount of the unrestricted assets increases during this year. The surplus is fundamental in improving the liquidity of the facility thus guaranteeing on its continuity. In addition, ...

Introduction

The bank of Dhofar was started with only two branches, One in Salalah and another one in Muscat, and was first incorporated in January 1990 as a public joint stock company in Oman to conduct banking activities for the investment, retail and corporate sectors. At its inception, the bank had the name Bank Dhofar Al Omani al Fransi, which was changed to the current name in 2003 after the bank met all approval requirements. Before the name change, Bank Dhofar Al Omani al Fransi had merged with the Majan International Bank in 2002. Over the years, the bank has ...

Executive Summary

Allstar is one of the most recognized names in the packaged food industry across the globe. Allround is the most successful brand of the Allstar group in the allergy and cold relief market. Allround brand is a consistent brand success in terms of sales and profitability and along these lines, it has become the most crucial component not only for the pharmaceutical division of Allstar but for its entire business. For the reason, cash flow of Allround can facilitate them to take increased opportunities offered by the emerging markets. However, Allround has increasingly become a concern for the pharmaceutical ...

Best buy enterprise has had minimal innovation activities over the past few years; the company's financial position is declining, revenue fell by 4.7% from two years ago and 2.4% since last year for a total loss of 1.32 billion or 3.36 per share. Cash flow is down 2.6 billion due to charges in the closure of stores in the UK, China, and Turkey, also, the reopening on 50 stores in China. Profit is down by 1.7 billion with a year-on-year growth of negative 361. This report will cover a situational analysis of potential causes of the company's revenue, cash ...

Income statement analyses

This is also called the income and expenditure account analyses or the profit and loss analyses whereby the sales less the costs should either give a profit or a loss depending on the product line. With regard to the ViiToR XP, sales are expected to rise over the next two years given the activity as has been studied over the past quarter. In the Asia Pacific region the sales are expected to rise by 17.36% each quarter based on the sales that have been lost due to stock outs. The costs of producing these products are not going to ...

Organizations apply the analysis of break-even to make price decisions of their products, understand the costs that are involved in the production, and make a decision on the volume of sales achieved that can make the business profitable. In this plan of activities, Mission Hill Wine made total sales of its wine at $12, 500 in 2015 and incurred a variable cost per unit of $700 and a fixed cost of $ 8million. Therefore, the break-even would be determined as: In terms of units, BEP = 8,000,000/ (12,500-700) = 678 units. In terms of sales, BEP =678 units*12, ...

Adjusting of entries takes place at the end of accounting period. Adjusting entries is necessary because the dates on which actual transactions occur and thereby the dates of normal entries not always coincide with the date respective to the principles of accrual accounting and revenue recognition. There are two categories of adjusting entries. One of the categories is deferred revenues and expenses. Such adjustments are needed in case there has been a cash flow in the past, but respective revenues or expenses must be recorded now. The second category is called accrued revenues and expenses. In this case there ...

1.0 Chapter 1 Introduction 1.1 Background and Rationale of the Research The industry of construction is not only a key player in the national economic growth; but also a crucial sector affecting the economic and social welfare of citizenry, particularly in its primary function in providing reliable and decent shelter. It is viewed as one of the most essential sector to highly contribute to the growth of an entire economy at the provincial, national and international levels (Artto & Kujala, 2008). In the recent years, cost modelling and estimation for construction projects have attracted major attention of several research scholars. ...

Valuation of private companies has application and necessity in both public and private equity world. While private companies need to come up with a rational valuation figure to convince venture investors for additional funding, public companies also consider acquiring private start-ups and thus have a keen eye on the outcome of the valuation of these private companies. Therefore, while an accurate valuation remains as a day-to-day agenda for private equity firms and also for the investors that are demanding transparency in the valuation process, still, the valuation of private companies remains a challenge given market volatility and scarcity of ...

Abstract

Performing the comprehensive analysis of the financial situation of AMC Entertainments, we have gained an optimistic review for the entity. Strong profitability driven by revenue growth and controlled cost structure will enlarge the podium of success for the company. On the other hand, high amount of operating cash flow growth, and a prudent spending on capital assets and dividend payment, indicates a sustainable approach of the company for maintaining balance throughout. Similarly, a sustainable proportion of debt-equity is apt according to the recent financial strength of the company and do not spark any source of concern. However, two issues ...

Significance of Accounts Receivable Practice

The most primary element for the success of a business is the way in which the systems of accounts receivable management, collections and billing are maintained. Often, this type of management collectively is known as the system of collections management. The main key to the success of this system is to manage it diligently. It is because having large amount of customers is not enough to run a successful business; revenue needs to be collected from these customers (Clarke, 2016). There are a number of reasons for a business setting up the accounts receivable in a given organization. When ...

Abstract

The above paper appreciates the fact that most organizations go through difficult economic times and require effective working capital management. Moreover, the study recognizes the fact that inefficient management of the same has adverse effects on the financial performance of the business. Therefore, financial managers have an obligation to maintain a balance in liquidity as one approach to enhance the profitability of the firm. To achieve the study objective, the paper utilizes an efficient research design, which is believed to assist the business in achieving its set purpose. The study seeks to use data from three companies (Coca-Cola, Barclays ...

Abstract

Performing the analysis for this milestone within the purview of profitability and cash management efficiency using the traditional financial ratios and horizontal analysis, we have gathered a useful insight into the financial position of the company that confirms bullish run in the company. We initiated the analysis with the calculation of profitability ratios and found that owing to increased revenue figures and most importantly,controlled cost structure for cost of goods sold and operating expenses, the company was able to generate higher operating and net profitability compared to the previous year. Moreover, during 2015, the company was also able ...

Discounted cash flow is one of the valuation methods of performance used by a company to pick on a favorable and attractive investment opportunity (Baker and Powell 105). This evaluation analysis method uses future cash flows that are to be discounted to find the estimated present value of the project’s potential to invest. Business evaluation entails a well laid out set procedures employed in the estimation of the owner’s interest economic value in business. Financial market participants use business valuation to arrive at the price they are willing to receive or pay out for the sale of ...

Management

It is important to know the internal rate of return because the percentage figure gives the speed of reinvestment that adds up to the break even value. Additionally, the Hurdle Rate is vital since it displays the financially attractive level of the investment. Further, the difference between cash flow and profit is that the amount recorded is the immediate cash in the firm’s account while the profit includes the amounts that will be paid in future. It is, however, important to get the NPV for any decision which flows into multi-periods because investment takes place over time and ...

Finance

About the paper The objective of writing this paper is to perform an in-depth yet succinct analysis of the financial statements and Management Discussion &Analysis (MD&A) section of Procter and Gamble (P&G). The attempt made will constitute a one-run discussion of all the financial statements and MD&A section within the accounting framework and a format of an accounting paper. The conclusion will thus assist our readers as how the company has performed during the recent years and how the management access their financial performance. However, before we initiate the core discussion, we will provide a brief discussion relating to ...

Company Analysis: 3M Co

The objective of this paper is to perform the 5-year financial analysis of 3M Co. As part of this analysis, we relied on the comparative analysis between the major financial item in order to understand the rising trend and to track performance indicators. The conclusion is to unearth the overall performance of the firm over the period of 5 years from 2011 to 2015. Beginning with the revenue figures, the company witnessed a modest compounded annual growth rate of 0.39% during the past five years. However, during 2015, the company witnessed first ever revenue growth decline of 4.86%, which ...