Apple Inc is a public company operating in the television and radio and TV broadcasting and the main one being manufacturing of wireless communications equipment. Apple's net change in the cash flows of the year ending September 28, 2013 was $3,513 Million. 377.3% growth was a growth of over thrice the change in cash of the year ending September 29, 2012 which stood at only $931 Million. In cash flow from the operating activities, in the year ending September 28, 2013, Apple generated $53.7 Billion from its major business operations. This is a good sign for its investors Continue reading...
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Essays on Cash Flow
Pitfalls On Capital Budgeting Practices Report Examples
Management of Working Capital Case Study: George's Trains
Actionable information on the future and current cash flow, working capital, and capital budgeting are what managers in both small and big businesses work hard to obtain in their daily activities. Working capital is can be used to measure up the liquidity of the operations of the business (Sullivan 2010). It is usually the current assets subtracted from the current liabilities. Managers are normally concerned about working capital and would always seek the best practices to achieve a better working capital management. This report tries analyses the case study of George’s train business with an aim Continue reading...
Good Report On Why Net Profit Differs From Cash Flow From Operations
The reason for difference in Net Profit from Operations in the Income Statement and Cash Flow from Operations in Cash Flow Statement is because, both the financial statement follows different accounting principle. While the Net Income of the company is calculated by following accrual basis of accounting, the CFO is calculated by strictly following cash basis of accounting. In other words, if the revenue from a unit sold during December is expected to be received in January, the income statement will record revenue in December itself while no such entry would be posted in Cash flow from Operations. Hence, Continue reading...
Free Essay About Accounting
Understanding the Cash Flow Statement
The cash flow statement is the financial statement which provides information beyond what is available in other financial statements i.e, Income Statement and Balance Sheet. Cash Flow Statement provides following information to its users:
- Complete information about the company’s cash receipts and cash payments during an accounting period.
- Information about a company’s operating, investing and financing activities.
- An understanding of the impact of accrual accounting events on cash flow.
There are two methods relating to payment of cash flow statements, namely:
- Direct Method
- Indirect Method
Although, both the methods are permitted under US GAAP and IFRS and the difference in the two methods is Continue reading...
Good Products And Services Research Proposal Example
The proposal is on winery industry in Canada called Wine Valley. The industry will major in supplying various types of wines. Picking on winery industry is because of fewer entry barriers and progressive demand for wine in the previous years. The existing firms do not have strong customer loyalty that may make it difficult for new firms to enter the industry. Competition in the industry is also not too stiff. There will be various jobs within the industry. Some of these jobs are; wine maker cellar hand, wine educator, and many more. Having wine educator in the Continue reading...
Free Essay On Cash Flow Statement
The payback system is the type of analysis used to calculate cash flow, and it can address some questions like investment taxes, acquisitions and action to pay them. Let us consider the case flow based on the job, which will be get covered for the employment that I currently have.
Consider payback period = Y + (A/B)
Y = Number of years before the payback years, Y = 3.0 YEAR
A = Total remaining to be paid back of break every year, A = $50
B = Net paid back in every year, B = 300
Payback period = 3+ (50)/ (300) = 3.17 years
The Continue reading...
Good Example Of Essay On Accounting For Leaders
Nectar Sweets Plc is a company with the main shop in Hong Kong. It is experiencing cash flow problems and is seeking an increase in the overdraft facility from the bank. Statements of the company reveal that its operations are profitable, but it is not efficient in collecting debt. The report identifies and analyses the company’s problems and recommends possible solutions. In addition, it uses financial ratios to assess the performance of the firm.
- Problems facing the company
- Nectar Sweets Plc has a problem in collection of its accounts receivables. The company takes a Continue reading...
Good Example Of Financial Accounting Report
Cash Flow Statement
*Refer to excel sheet for all the calculations
**We have started Cash Flow with operating income as even with net income we had to add back items to reach at operating income only.
Importance of Cash Flow Statement
Unlike other financial statements, Cash Flow Statement details the position of cash in the company. While both the income statement and Balance Sheet are made on accrual basis, Cash Flow is made on cash basis of accounting. In this way, Cash Flow Statement provides a detailed and an in-depth overview of cash inflows and outflows from the company. Below discussed is some other Continue reading...
Example Of Exporting Energy To EU Research Paper
All Possible Investment
Investment is an important aspect that associated with an organization as well as business, as it has a tendency to deliver future aspects and benefits in the future (Baker & Powell, 2005). Investment has a clear cut strategy in the mind which is to deliver future consequences and prosperity in the future. The tradeoff between the risk and investment can be extremely essential for taking different investments into consideration, and reach on a certain conclusion regarding the providence of effectiveness in the market (Dayananda, 2002).
This particular part of the assignment specifically deals with the analysis all the possible investment Continue reading...
Good Research Paper About Time Value Of The Money
It is commonly known that the money in hand today is more worth than the money of same amount in future. This idea is based on earning potential. This principle says that the money can earn interest and gradually can grow. Everyone knows the fact that the money deposited in bank account will earn interest. The time value of the money is a priori principle that a fixed amount of the money that is accessible today is more costly than the same amount of near future. This principle can be generalized for the economic resources available by social contract. Continue reading...
Firm Valuation Report Sample
Valuation Method: FCFF Model
In this section, we will now compute the intrinsic valuation of Air Canada using Discounted Cash Flow Valuation using FCFF method. Referring to the annual report of the company for the latest years, 2011, 2012 and 2013, we found that the company had never paid dividend, hence, it was clear that we cannot go ahead with dividend payments to value the firm. Moreover, FCFF valuation is suitable for firm-wide valuation which is the very essence of our report. Here are some of the rations as why we selected FCFF for valuation of the firm:
- As discussed above, Air Continue reading...
Example Of Essay On Cash Flow Statement
(a)Discuss the need for a cash flow statement such as that given for JLJPlc;
Cash flow statement analysis is helpful to management in the generation and utilization of cash in the most efficient way. Efficient utilization of cash helps management in its objective of wealth maximisation. The cash flow statement helps in identifying the strength of cash generation in the various activities such as operations, financing, and investing. It helps trace the source of cash received and how it is disbursed. For To be a healthy firm, cash should come from operations. The cash flow statement is also Continue reading...
Good Report On Small Business
2. C. The calculations is done based on many assumptions given in the case instruction. The analysis begins with the development of labor cost. In the case information, it is said that Mary will be the instructor, and she will be hiring her friend as a part-time receptionist. The salary of Mary is $900 per month, and it is increased in next year i.e. 2016. Similarly, her friend Jamie earns $90 ($10/hr.) in a month, and she gets pay rise in next 6 months by $10 per week. Accordingly, with her increasing experience and expertise in the related job Continue reading...
Return On Investment Essay Examples
Every person is born with a different mindset and thinking in this world, and on the basis of this mindset and thinking, they will take different aspects accordingly. On the basis of the mindset, an individual will select a desired career for them. The clearest intentions behind selecting and addressing a particular career depends upon the fact that how much future benefit it will give or arise for the individual in particular (Peterson, Fabozzi & Habegger, 2004). The aspect of return on Investment (ROI) is the most important aspect that strides under the analysis of development or pursuing a career. Continue reading...
Example Of Financial Management Essay
Part A: Future values of cash flows at the end of the seventh year at different rates
Section a: 6% interest rate
The first rate that has been used is 6%. In the first year, the amount is $ 15,000. Since these amounts are received at the end of each year, the interest is gained during the following year. The formula for future value is; FV = A (1+r) ^ n. In this formula, FV is the future of the annuity; A is the annuity itself while r is the interest rate. On the other hand, n represents the time. In the first instance the future value for $ 15,000 in the entire period will be $ 15, Continue reading...
Goliath Productions Inc Case Study Sample
Goliath productions, a producer and distributor of motion pictures signed a contractual agreement with Giant Theatres giving them exclusive rights on the five films produced for six months. Goliath acknowledged that Giant needs an integral inducement in the contract as the sole source without competition, for six months ending February 28th 2007. Giant Inc has 475 theatres across United States. The contract is silent on the area of jurisdiction. However, in the agreement, Giant only purposes to show the film in the 475 (approximately) theatres in United States and therefore, Giant cannot limit Goliath from entering into a Continue reading...
Example Of Deferred Taxes Research Paper
Analysis of Financial Statements of Goldman Sachs
A world renowned company, Goldman Sachs is an American Multinational Corporation that deals with the institutional clients offering investment banking, investment management and other related financial services. The following report will analyze some of the crucial items of the financial statements of Goldman Sachs including Earning per Share, Cash Flow Statement, Tax Deferrals, Share based compensation, Employee Compensation Plans. We are sure that by the end of this report, we will be able to have a comprehensive overview of the company’s financial statements.
Footnote Information-Deferred Taxes
Note 24 of the Annual Report is related to Continue reading...
Financial Control Of Business Critical Thinking Examples
Determination of cash flows
Based on the given assumptions, the company does not need to borrow any funds to finance its operating expenses. In October and November, the business is expected to make losses of $28,900 and $14,200 respectively. With only a profit of $650 expected in December, the net loss for the three months will be $42,450. Despite this loss, the firm will have adequate cash to finance its operating expenses.
The losses and profit for each of the three months are after deducting depreciation expense. Depreciation expense is a non-cash expense. The company will not pay any money Continue reading...
Good Example Of Cash Flows From Operating Activities Report
PART I: MAJOR RISK FACTORS
- Interest rates: The economy is experiencing fluctuation in interest rates on mortgages. ABC produces cedar roofing and siding shingles hence it is in the housing industry. The demand for housing is largely influenced by interest rates since most people buy and construct houses using mortgages. High interest rates increase the cost of mortgages and lower the demand for housing (Smart & Megginson, 2008). With low demand for the company’s products, the planned expansion may result in losses.
- High competition: There is intense competition in the industry as the number of firms has grown considerably. This leads to Continue reading...
Good Analyzing Payback Period Method Essay Example
Payback Period is one of the most simple technique of capital budgeting where it is used to ascertain the time it will take for the entity to recover its initial cash outflows from the cash inflows generated by investment project. It is an important determinant as no business organization would like to invest in projects with long payback time period.
Payback period is calculated with following formula:
Payback Period= Initial Investment/ Annual Cash Inflows
Secondly, it is the simple and easy applicability of the payback period which is the another reason for continued applicability of the payback period method.
In order to evaluate the usefulness of Continue reading...
Financial Statements Essays Example
Which of the primary financial statements is the most significant?
The financial statements of any company are highly significant as they contain the financial information required by the creditors and the investors to be used for the evaluation of the financial performance of the company. These statements are also important for the management as it is the way they communicate with all the stakeholders of the organization (Goldwater & Fogarty, 2011). The primary financial statements include the Income Statement, Balance Sheet, Cash Flow Statement and the Statement of Owner’s Equity. It is a general belief that the income statement must be the most important one as it contains all Continue reading...
Good Example Of Finance For Google Or Microsoft Report
Free cash flow calculation for Google can be done in three different ways. This will be a cash flow which will be available for all the investors of Google, its shareholders and also bondholders. It will be obtained after Google makes all its investments that are required to sustain the demands of its products. The second formula that will be applied for this case is the WACC. It will be calculated asWACC=SS+BrS+BS+BrB1-TC
Therefore, the WACC = $ 1255/ ($ 1255 + $ 1380) * 0.12 + $ 1380/ ($ 1255 + $ 1380) * 0.15 (1 – 0.35) = 0.055
The other method to obtain this value will be the Continue reading...
Understanding Financial Statements Essay Sample
The cash flow statement provides information beyond what is shown in the income statement. Since the income statement is made on the accrual basis of accounting rather than cash basis, it will always differ from the cash flow statement. The cash flow statement provides the following information:
- Information about the company’s cash cash receipts and cash payments during an accounting period
- Information about the company’s operating, investing and financing cash flow activities
- A transparent view of company’s performance as it provides an understanding of the impact’s of accrual accounting events on cash Continue reading...
Good Cash Flow Estimation Essay Example
The Concept of cash flow estimation?
Every business survives on liquid to cater for its daily operational activities. It is therefore important to monitor the flow of cash from the source to the area where it is used. A business could be making profit but its cash account is inconsistent and could result in insolvency. If a business realizes at the end of financial year that the cash account has a deficit, then it would be imperative for the company to review all cash transactions to evaluate where the deficit came from. The international accounting standards board (IASB) requires that all businesses comprehensively consolidate their Continue reading...
Financing Growth Companies Essays Examples
The chapter discusses some of the approaches relating to financing of growth in corporates. Since growth is an essential part of a firm, managers have to arrange funds to source this growth. However, whenever a company faces rapid growth, it poses a special problem for the finance managers as they have to arrange large amount of cash to fund this growth. The ultimate goal of a finance policy of a firm, whether young or old is to maximize the value of its shareholders and also since the set of finance policy and instruments available to a finance manager is Continue reading...
Free Understanding Financial Reports: Coca Cola Company Essay Sample
Web Location: www.coca-colacompany.com
Link to financial information:
Coca Cola is the biggest brand of the world and a trade mark registered for the Coca Cola Company. It is among very old and successful company whose history goes back to over 127 years of successful operations. Today, the company has over 3500 brands that are manufactured and traded worldwide. I have had interest in this company since long as I am a loyal customer of the soft drink; coca cola and prefer it over any other cola present in the market Today. Apart, how the company has grown to Continue reading...
Finance Theory And Financial Strategy Essay Example
7th December , 2013
The chapter describes a relationship between Financial Theory and Financial Strategy and initiates the discussion with defining stratgy planning as a process of deciding how to committ the firm’s resources across different line of business while the financial side of strategic planning allocates a particular resource and capital. Although finance theory has made major advances in their applicability over the financial markets and although the financial tools like discounted cash flow valuation is widely used, there are still relevant differences between finance theory and strategic planning and the chapter deals with this discussion primarily. In nutshell, the chapter Continue reading...
Applied Managerial Finance Research Paper Samples
The Net Present Value (NPV) is a formula that is used in determining the current value of an investment following the discounted sum of cash flows that have been received from the project, the initial value usually a negative to indicate that the money is going out. If the investment is to be considered valuable then subtracting the initial value from the discounted sum should be a positive.
The internal rate of return refers to the rate used in capital budgeting to compare or measure the profitability of investments otherwise referred to as the discounted cash flow rate of Continue reading...
New Project Essays Example
Valuation of projects is a critical task whenever a business wishes to determine the worthiness of a project. This worthiness is measured in financial terms. In valuing the project for MNQ Company, the IRR, MIRR, NPV and payback period will be used. The project will be accepted if the IRR is higher than the discount rate. If IRR is lower than the discount rate, the project will be rejected. On the other hand, it will be accepted if NPV is positive. However, if the NPV turns out as negative, the project will be rejected. This project will be accepted Continue reading...
Good Report On Financial Statements Analysis
The aim of every business executive is to make a company successful. They go beyond their ways to implement strategic and management techniques to achieve this. However, most management advice and strategies that companies use are quite unreliable and impractical. Only a few tend to adopt strategies that work for them. The difference in strategies is what leads to different financial position of companies. Some companies therefore end up being better than others. This could be in the name of market share, innovation or even recognition. In the end, some companies stand out than the others. This report is Continue reading...
Free Accounting 206 Final Paper Term Paper Sample
Part I: Risk profile of ABC
There are several risks to which ABC Company is exposed. Based on economic issues, ABC Company is facing a challenge of running its operations is an unprogressive economic environment. This has been occasioned by the post economic crisis effects. The level of spending is yet to recover fully and hence the company may not manage its targeted business performance. The major industry issue that ABC has to deal with is the increase in competition owing to technological advancements. This competition has been brought about by an increase in efficiency due to fast manufacturing technology. ABC is facing intense competition Continue reading...
Free Business Plan On Financing Decisions Making And Source Of Funding
The business in perspective is of a collector`s item (s). It involves the sale of inventory held from collection of materials and items that include coins, lawn gnomes, books, movies, music, and or paper money. The business has an expansive network of outlets and its focus is on the maintenance of an inventory so ancient and antique yet so hard to find and for the purpose of satisfying the customer`s need for items with sentimental value.
The business has been operational for the past two years since the year 2011 until presently this year 2013. The business Continue reading...
Free Business Plan On Strategic Risk
- Risk Profile of the Company
Risk is an element which is always present in the business which ultimately results in loss of company’s investment. This is a risk of exposure in the bottom lines of business. However, there are certain risks that found in business which are categorized under the following captions. There is a chance that ABC Company will have a significant amount of association of the business based risk. This particular risk is all about inventory management which is used in making cedar roofing and siding shingles. It may happen that, the Continue reading...
Example Of Google And Groupon Case Study
What is Net Present Value (NPV)
NPV = Total PV of CF – Initial cash outflow
Where total PV of cash flow is defined by
PV of CF = CF1 / (1+r)^1 + CF2 / (1+r)^2 + CF3 / (1+r)^3 + CF4 / (1+r)^4 + CF5 / (1+r)^5. CFn/ (1+r)^n
Net present value helps in comparing a dollar today with a dollar in the future. It can do so by discounting the future dollar by adjusting for inflation (Rouse, 2011). Companies use this method to see the financial viability of a project against its financial target.
In the problem, the cash flow is indicated in the first row of Continue reading...
Financial Statement Anlayis Essay
The company recognize the amount received from hotel, tour and transportation at the time services are provided to the customers. Various sources of revenue for the company and their respective classification is as follows:
- Amount deposited by the customers on account of cruise deposits represents unearned revenue which are the then classified as cruise revenues along with revenue earned from onboard activities . These revenues are recognized on completed voyage or pro rata basis.
- Further, the revenue earned from sales to guests of air and other transportation to and from the ships is recorded in cruise passenger ticket Continue reading...
Example Of Report On In Comparison Of The Cash Flow Statement Of Two Football Clubs, Our Analysis Is
Analysis of Cash Flow Statement
Cash Flow From Operating Activities:
i)Richmond Football Club:
The operating cash inflow for the company during 2012 was $3451373 with an increase of 20.54% compared to 2011. The increase was attributed primarily to increase in earnings from operations of the company during the year that included receipts from football operations which stood at $14296030, Receipts from market Operations which amounted to $19404901 and finally receipts from Gaming and Other Social Operations that amounted to $3774743. However, a substantial decrease in contribution from Jack Dyer Foundation Group and Interest received, offset some percentage of increase in operating cash flows Continue reading...
FASB- Accounting Standards Codifications Essay
ASC 830-230-55-1: Foreign Currency Matters-Statement of Cash Flows- Implementation Guidelines and Illustrations
ASC 830-230-55-1 Provides us illustrative guidance on statement of cash flow of an entity which either have operations in foreign domicile or conduct transactions in foreign currency. Such Entity shall report the reporting currency equivalent of foreign currency cash flows using exchange rates at the time of initiation of concerned cash flow. The entity may use weighted average of exchange rates for translation if the outcome is same as if the rates at the dates of the cash flow were used. For the purpose of reconciliation of change in cash and cash equivalents, entity, in the statement of cash Continue reading...
Free Essay On Statement Of Cash Flows
Why do some financial analysts and advisors consider the Statement of Cash Flows to be the most significant of the audited financial statements? How is the information presented in the Statement of Cash Flows different from the information presented on the Income Statement? Is it possible for an organization to incur a net operating loss for the year and have positive cash flow from operations? Why or why not? In the long run, is it more important for a business to have positive cash flows from its operating activities, investing activities, or financing activities? Why?
Although many owners believe Continue reading...
Case Study On Statement Of Cash Flow
A cash flow statement can be prepared in two distinct methods namely direct and indirect. The direct method records of all transactions and make a direct entry into the cash flow statement. This would include the amount of cash that received from the customers or paid to the suppliers. It ends up with a reconciliation of the total net income to the cash incur due to the operating activities. For example, an entity agglomerates the entire sales receipts subtracting or deducting the cash payments that took place for items such as inventory and the salaries. The indirect method involves Continue reading...
Financial Management Essay Examples
Firstly, Firms acquire other firms in order to gain a larger market share and gain a competitive advantage. A firm may acquire another firm in order to improve its marketing and distribution network or acquire the clientele base of its competitor. Secondly, firm acquire other firms in order to diversify their market. A firm may acquire another firm operating in a different industry or in the same industry but a different market segment in order to diversify. Diversification is a risk management tool. Thirdly, a firm may acquire another firm in order to reduce its production and operational costs. Continue reading...