OBJECTIVE The study sought to evaluate the effectiveness of cash management policies at Hunyani Flexible Products (HFP) using data from 2000-2010. Other objectives of the study were to identify the key processes and models in cash management; examine the impact of poor cash management on the overall company performance and come up with strategies that can lead to an effective cash management system. The descriptive survey method was used to solicit information from the respondents and
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Q.1 examine the reasons for holding inventories by a firm and also discuss the techniques of inventory control? Inventory is a necessary evil that every organization would have to maintain for various purposes. Optimum inventory management is the goal of every inventory planner. Over inventory or under inventory both cause financial impact and health of the business as well as effect business opportunities. Inventory holding is resorted to by organizations as hedge against various external and
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computation; even cash flows Compute the payback period for each of the following two separate investments (round the payback period to two decimals): 1. A new operating system for an existing machine is expected to cost $260‚000 and have a useful life of five years. The system yields an incremental after-tax income of $75‚000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10‚000. Payback period =Cost of investment/ Annual net cash flow =$260‚000/
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ABC is a start-up firm‚ and therefore‚ it has no previous investments. Also‚ ABC has no other investments planned or contemplated other than the one described in this problem. For an investment of $I today‚ the expected cash flow to ABC in one year is $140‚000. This cash flow is the profit on the investment‚ plus salvage‚ net of taxes and commissions‚ etc. The internal rate of return on the project is 40%. Currently‚ ABC has no debt in its financial structure and its book equity is zero. Book
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PSAK 55 : FINANCIAL INSTRUMENTS‚ RECOGNITION‚ & MEASUREMENT | | | | | Authors Stephanni A. Rubyanti 120110090047 Satrio Bayu Pandowo 120110100001 Muhammad Rizky Pratama 120110100009 | CHAPTER 1 BACKGROUND ISSUES Financial instrument is any contract that adds to the value of the entity ’s financial assets and financial liabilities or equity instrument of another entity. Today the financial instrument has been growing by leaps and bounds‚ not only used by financial
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Another useful aspect of the reports is that managers are able to communicate with other individuals about how to properly run the company. What is the total cash flow from operation? The Net operating cash flow has decreased from in operations to $23.26 billion from $25.59 in 2013 and $24.26 in 2012. What financial statement user would find this information most important? My personal favorite financial statement is the income
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company. The Alpha project will cost $150‚000 to develop and is expected to have annual net cash flow of $40‚000. The Beta project will cost $200‚000 to develop and is expected to have annual net cash flow of $50‚000. The company is very concerned about their cash flow. Using the payback period‚ which project is better from a cash flow standpoint? Why? 3. A five-year project has a projected net cash flow of $15‚000‚ $25‚000‚ $30‚000‚ $20‚000‚ and $15‚000 in the next five years. It will cost $50
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AFIN858 Financial Management and Policy Week 1 S1 2014 “INTRODUCTION TO CORPORATE FINANCE” “Where is This Slide From”? • Most of the slides we use in this unit are provided by the Publisher of the required text “…as down-loaded from Connect…” • Sometimes we modify slides by adding or removing content. Other times we use slides from other sources. Occasionally we ‘make’ slides. • Note that lecture slides are not numbered sequentially. • Slides are identified in the lower RHS corner
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CHAPTER 17 Capital Budgeting for the Multinational Corporation EASY (definitional) 17.1 The _______ is defined as the present value of future cash flows discounted at the project’s cost of capital minus the initial net cash outlay for the project. a) net present value b) equity-adjusted present value c) cost of capital d) value additive principle Ans: a Section: Net present value Level: Easy 17.2 The most desirable property of the NPV criterion is that it evaluates a) investments
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Discount received Rs.1250 and discount allowed Rs. 850 in September 2002 have been posted to wrong sides of discount account. d) A cheque received from Mr. Longford for Rs. 1500 for goods sold to him on credit earlier‚ though entered correctly in the cash book has been posted in his account as Rs. 1050. 3 e) Stocks worth Rs. 255 taken for use by Mr Dayananda‚ the Managing Director‚ have been entered in sales day book. f) While carrying forward‚ the total in Returns Inwards Book has been taken
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