Essays on Cashflow

Dear Texas Bob,

The calculations made were based on formulas we deem fit. In obtaining the income, we used the cash flow method, which is simply the difference between the cash that flows in versus the cash that flows out of the business. That method would prove to be more accurate since in the retail food industry, cash is considered king. Likewise, we discounted the values using the present value formula. We deem it important that the time value of money shall be considered to accurately reflect the amounts, not in a nominal sense, but in its real sense. Lastly, we also ...

Corporate decision makers and governments have subscribed to the view that cashflow is a reliable indicator of a firm’s health.usually, cash flows are pragmatic yardsticks. One need not look into other sources of information, but in the level of cash coming in versus the amount of cash being spent, to determine the feasibility of a business. However, Gentry says that cashflows, particularly operating cash flows are not as reliable as they seem to be. Taking off from a study done by Casey and Bartzack, it has been found that operating cashflows do not provide significant information on the ...

A cashflow statement outlines the fluctuation in the cash resource of a company rather than the change in working capital. This includes the cash inflows and outflows of a company within a fiscal period. Unlike the income statement or balance sheet the items recorded in the cashflow statement are different from those recorded in any other financial statements. The beginning and ending balances are adjusted according to the changes which take place within that reporting period. The main purpose for the construction of this financial statement is to clearly identify the changes in cash or cash equivalents for one fiscal year. However, ...

Abstract

Financial statements suffice for purposes of communication of financial and non-financial information to end consumers. These consumers in one way or another use the information in the decision making situations they are confronted with. Some of the basic financial statements include; the statement of income, the statement of financial position, the statement of cashflow and the statement of changes in equity and reserves. On the other hand, consumers of financial statements can be divided into two broad groups; internal consumers and external consumers. Internal consumers include managers and employees while external consumers are creditors, investors and government regulatory bodies. ...

Chapter Two: Real Estate Lending Decision in Kuwaiti Banks

Literature Review

The five Cs of credit model – character, collateral, capital, conditions and capacity, all serve as important indicators for gauging the inclination and aptitude of debtors in fulfilling the obligations they have to their respective creditors (Sraeel, 2005, p. 40, par. 5; Strischek, 2009, par. 2). It is thus advisable for creditors to make their decisions based on the five Cs of credit model in order for them to assess the creditworthiness of their respective debtors properly (Strischek, 2011, par. 1). The prominence of the five Cs of credit model resurged most recently during the 2008 global financial ...

- Income statement analyses of the companies have different ratios in total, which predominantly are net profit margin (NPM) and gross profit margin (GPM). These are some important ratios of income statement to analyze the financial strength of a company. The NPM of the selected companies are mentioned below,

DuPont Composition Analysis

The DuPont Composition is basically the segregation of different ratios The average ROE of Aecon Gr. is 11.72%, while it is 25.77% for Bird Construction and 14.65% for Boyuan Constructions, therefore it could be said that the DuPont decomposition of Bird Construction Inc is the highest manifesting a net figure of ...

Introduction

Wal-Mart which is one of the largest retailers in the world operates in 15 countries over 8,500 stores. The growth rate of Wal-Mart has come to a saturation point in many segments due the slow economic condition in the world. However, Wal-Mart has potential for an inorganic growth which has influenced the Wal-Mart management to look for some feasible options. Whole Foods Market, a leading company in natural food products retailing, is doing well in the southern region of USA. This paper upon analyzing Whole Foods Market from a financial perspective will evaluate many aspects of possible merger or acquisition with ...

Garden Centres are confronted by an unfriendly environment that inevitably points to the direction of change. Applying the PESTEL analysis on the centres reveals a situation that paints a grim picture of the centres. This section shall discuss two key macro external factors that cumulatively add up to posit a rough situation to the business. The technological advancement within the industry comes out as one key macro external factor that the business ought to be wary of. For starters, the business is still left wallowing with traditional approaches of management and production over technological applications. The system of management is still ...

Having been granted the opportunity to administer consultancy services to your bank specifically in regard to the new staff training and orientation towards their new roles at the Commercial Lending Department in respect of small businesses, I submit the following training manual for use. The manual explains the reasons and application of analysis and gives examples of statements to analyse. The staff is advised to incorporate other financial information and competencies relevant to the lending department.

Reasons for Bank Analysis of clients’ statements and Information

In any commercial transaction in banking, the overriding objective often is that the bank should be able to make profits. The concept of ...