Cash Flow Essays (Examples)

Filter results by:


View Full Essay

Cash Management Practices

Words: 645 Length: 2 Pages Document Type: Essay Paper #: 23430175

Cash Flow Management

Cash Management Practices in Arizona Parks and Recreation

The key to keeping any business, public or private, alive is to ensure that the available funds are properly allocated and that the amount spent monthly is less than or equal to the amount available. When it comes to state-run entities, one essential factor that each agency must take into account is their limited budget and the necessary holdings for any and all risks associated with that vein of the state (Office of Financial Management, 2010). One such agency that of late has constantly struggled with meeting its cash management goals is the Arizona Parks and Recreation. The primary focus of this analysis will review the park's specializations, risk allocations, and staffing practices.

The Arizona parks and recreation is responsible for the care of all state parks and community centers. Additionally, the division is responsible for events held within the parks, parades, and other public community events (Arizona Parks and Recreation). Among these specializations is the ability to keep the parks clean and functional, improve existing fixtures as needed within the parks, repair any damage to the parks, and in many instances allocate partial funds to the rebuilding of…… [Read More]

Works Cited

Huffman, David and Moore, Margaret (2004). Responses of Fendler ceanothus to overstory thinning, prescribed fire, and drought in an Arizona ponderosa pine forest. Forest Ecology and Management, 198(1-3): 105-115.

Arizona Department of Parks and Recreation Association. Accessed at 

Washing State Office of Financial Management: Risk Management Basics (2010). Accessed at
View Full Essay

Cash Basis Verses Accrual Basis

Words: 871 Length: 3 Pages Document Type: Essay Paper #: 93919102

Cash Basis vs. Accrual Basis

The cash basis of accounting is more likely to be used by service businesses than by retail or manufacturing businesses. Service businesses usually do not need equipment and can sell a service they perform with nothing more than their own hands and minds. Think of people who are lawyers, writers, public relations and advertising personnel, and accountants.. (Edmonds, McNair, Milam, and Olds, Fundamental Financial Accounting Concepts, 4th edition, McGraw-Hill Irwin, 2002) In the cash basis of accounting, the business records are "cash in" (deposits to the bank account) called cash receipts, and "cash out" (checks) called cash disbursements. Cash receipts - Cash disbursement = Cash flow. Each month's cash flow is added to the preceding month's cash balance yielding the current month's cash balance. Unless a business is a small service company, it cannot tell if it is earning a profit if it uses cash accounting. There are two reasons. The first reason is that cash receipts and disbursements related to the same business activity do not always fall in the same month. For example, a lawyer may perform a real estate closing in May, pay for real estate closing photocopies in May, and get…… [Read More]


David Minars, Davis A. Minars Accounting: Themes, Keys, Formulas, Glossary of Accounting Terms for Your Introductory College Course Barrons Educational Series; February 1992.

Edmonds, McNair, Milam, and Olds, Fundamental Financial Accounting Concepts, 4th edition, McGraw-Hill Irwin, 2002
View Full Essay

Flow Inc Insurance Settlement Proceeds Are Treated

Words: 353 Length: 1 Pages Document Type: Essay Paper #: 57607371

Flow Inc.

Insurance settlement proceeds are treated as operating cash flows under ASC 230. Thus the receipt of the $20 million would be operating. The investment of the $20 million into the company's pension fund would also be an operating cash flow. While normally investing money into the market is considered an investment flow, that is only when the beneficiary in the corporation. In this instance, the beneficiaries are the company's employees and the defined-benefit plan is a form of employee compensation. All employee compensation is considered an operating cash flow under ASC 230.

The flow should not be classified as an investing cash flow for two reasons. The first is that all insurance disbursements are classed as operating flows. The second is that employee benefits are also operating flows. If the funds were used to rebuild the facility, then that spending may be classed as an investing flow. However, that is not the case as the funds are being used for the benefit of the employees and are therefore not considered capital flows…… [Read More]

Works Cited:

No author (2010). U.S. GAAP accounting standards: 230: Statement of cash flows. Accounting Retrieved December 6, 2010 from
View Full Essay

Cash Budget and Target Cash Balance the

Words: 946 Length: 3 Pages Document Type: Essay Paper #: 60004398

Cash budget and target cash balance

The target cash balance is defined as the ideal cash amount a company intends to hold in its reserve at a given time. This figure seeks to strike a balance between the balance sheet costs of extremely little and too much cash. While a company with surplus cash at hand may misuse on investment opportunities, a company with poor cash will often be forced to make undesirable transactions to create more operating capital (Besley & Brigham, 2011). Individual investors are advised to set their target balance too. They may estimate at least the percentage of their holdings in cash to avoid such pitfalls.

Cash budget refers to the operating budgets and capital expenditures. It begins with the initial cash balances then cash inflows are added to the available cash. Cash outflows will then be subtracted to obtain the cash balance. If the cash balance falls below the company's intended balance, the financing segment will show the required borrowing. The financing segment covers debt payments among them interest payments. The financing activity adjusts the cash balance to obtain the ending cash balance (Ehrhardt & Brigham, 2009).

Compare and contrast the cash budget and long-term financial…… [Read More]


Besley, S., & Brigham, E.F. (2011). Principles of finance. Mason, Ohio: South-Western.

Brigham, E.F., & Daves, P.R. (2012). Intermediate financial management. Mason, Ohio: South-Western.

Brigham, E.F., & Houston, J.F. (2012). Fundamentals of financial management. Mason, Ohio: South-Western Cengage Learning.

Ehrhardt, M.C., & Brigham, E.F. (2009). Corporate finance: A focused approach. Mason, OH: South-Western/Cengage Learning.
View Full Essay

Managing Cash Week 17 Activity

Words: 1566 Length: 6 Pages Document Type: Essay Paper #: 2167160

Looking at the instrument company that is being examined, it is clear that they have very little working capital to utilize. Where, they have a total amount in working capital of £ 15,000. As the company paid out £1,700,000 in obligations and received a total of £1,825,000. This is important, because it shows that the business is undercapitalized, based upon their low working capital figures. As a result, the company needs to remain more liquid, to be properly capitalized for future investments

Table 17.3 Solution to a working capital problem in my organization

Problem identification

Low Working Capital

Analysis (investigation)

The working capital position of the company was affected by the total amounts of cash they invested in new inventory.

Conclusion to the analysis (results of the investigation)

The business needs to be able to control their cash position, to effectively manage their working capital.

The solution, listed as a set of SMART recommendations


Strengths and weaknesses of the recommendations

The strength is that the underlying amount of working capital would improve. The weakness is that the company would invest in less inventory and other investments

The implications of the solution, if implemented

The solution of more effectively managing…… [Read More]


The Cash Flow Statement, n.d. Understanding Marketing and Financial Information, pp. 239 -- 256.

Financial Statements, n.d. Understanding Marketing and Financial Information, pg. 133.

Laddering, 2010, Free Dictionary. Available from: < > [25 September 2010].

Harvard Format.
View Full Essay

Dividends a Regular Cash Dividend Is Paid

Words: 1228 Length: 4 Pages Document Type: Essay Paper #: 25083363


A regular cash dividend is paid out of the company's cash supply. The dividend can be at a fixed rate, or can be loosely tied to the company's net income. This is the most common form of dividend, and is paid under most circumstances. Whereas a regular cash dividend is a recurring dividend, an extra cash dividend is a non-recurring dividend (Investopedia, 2012). This is a one-time dividend that is paid by the company. There is no expectation of a future extra dividend, in contrast to a regular dividend. A special dividend is the same thing as an extra dividend. The only slight difference is that something termed a special dividend is not necessarily going to be paid out of cash. The company may pay with shares or some other asset. Most commonly, however, this type of dividend will be paid out of cash.

A liquidating dividend is fundamentally different from the other forms of dividend. The liquidating dividend is paid out when the business is in a state of liquidation, and the dividend is the amount that the shareholders receive. The other forms of dividend are typically paid as the result of ongoing business, using the proceeds of…… [Read More]

Works Cited:

Investopedia. (2012). Extra dividend. Investopedia. Retrieved April 15, 2012 from 

Investopedia. (2012). Definition of liquidating dividend. Investopedia. Retrieved April 15, 2012 from

Hadzima, J. (2005). Dilution: A primer on stock vocabulary. MIT. Retrieved April 15, 2012 from

Goldman, D. (2012). Apple announces dividend and stock buyback. CNN. Retrieved April 15, 2012 from
View Full Essay

Firms Utilize to Pay Cash

Words: 997 Length: 2 Pages Document Type: Essay Paper #: 80110786

This make it easier to finance firm operations by selling stock, but on the other hand the firm can be forced to pay shareholders when it needs the cash to finance its debt, invest in new projects, or simply to pay for its daily activities without going further into debt.

The final method is that of a hybrid method. Dividends are paid on a stable basis. But over the long-term, the debt-to-equity ratio is reviewed, and if the firm is regularly coming short on paying its debts and other expenses, payments to shareholders may be curtailed (How and why do companies pay dividends, 2010, Investopedia). This is the preferred method, given the added flexibility it offers the firm. Hybrid methods have the ability to ensure the firm's long-term financial health, as payments can be curtailed in times of sustained economic hardship -- but hybrid payments still offer stable returns for investors, in most instances.

How much cash should a firm hold?

On one hand, it might seem from an investor's point-of-view that it is always 'good' to receive more money in the form of larger dividend payments -- either 'special' dividends, regular payments, or in the form of stock repurchases.…… [Read More]


Baker, Kent H., Tarun K. Mukherjeel, Gary E. Powell (2005, Summer). Distributing excess cash:

the role of specially designated dividends. Financial Services Review.

Retrieved October 11, 2010 at;col1

How and why do companies pay dividends? (2010). Investopedia. Retrieved October 11, 2010 at
View Full Essay

Profit and Have No Cash

Words: 1302 Length: 4 Pages Document Type: Essay Paper #: 50080751

will go up in the fourth quarter, they could end up ordering for more pieces of the same so as to satisfy the anticipated demand. Assuming that the company purchases 400,000 units of Product Q. At a total of $2,000,000, it would have only $100,000 left in its coffers. Assuming that the consignment arrives on time but the expected increase in demand for Product Q. does not come to pass, the company could be left holding stock worth $2,000,000. Although, the business is still profitable (assuming it continues to sell the normal 100, 000 units), it could find itself broke to an extent where it may not be able to finance capital projects. This is more so the case given that the normal revenues it gets could be tied up in other commitments. In other words, although the business could be making a profit, it could still be cashless.

A business could also find itself with no cash on hand despite making a profit in other numerous instances due to poor planning and imprudent decision making. This is more so the case in those instances where a business entity decides to make a prepayment for the future only for the…… [Read More]


Brigham, E.F. & Ehrhardt, M.C. (2011). Financial Management: Theory and Practice (13th ed.). Mason, OH: Cengage Learning.

Jones, J.P., Heitger, D.N., Mowen, M.M. & Hansen, D.R. (2011). Cornerstones of Financial and Managerial Accounting (2nd ed.). Mason, OH: Cengage Learning.

Needles, B.E. & Powers, M. (2007). Financial Accounting (9th ed.). Boston, MA: Cengage Learning.

Weil, R., Schipper, K. & Francis, J. (2009). Financial Accounting: An Introduction to Concepts, Methods, and Uses (13th ed.). Mason, OH: Cengage Learning.
View Full Essay

Personal Cash Management Policies and Practices The

Words: 2093 Length: 6 Pages Document Type: Essay Paper #: 46512264

personal cash management policies and practices. The paper starts with by stating the methodology through which the content was collected for the relevant literature in the paper. The paper then presents a clear definition of what cash management is and presents an overview of some of the most utilized personal cash management practices. The literature review also presents numerous internal cash management policies and practices that can prove to be feasible and profitable on the personal level. The paper concludes with an overview of all the facts discussed.

Search Strategy

In order to collect relevant data for the results, concise and yet comprehensive information related to the topic have been compiled from articles published online individual researchers, practitioners, as well as, international research institutions. The aim of the study is to critically review the strengths and weaknesses of both conception and implementation of research pertinent to our topic -- Cash Management. This section also aims to present new questions raised by the research and their potential for future enquiry. The keywords used to collect data had been, "personal cash management," "cash management practices," "cash management policies."

As mentioned above, factors affecting personal cash management decision use are several, but only…… [Read More]


Agarwal N.K. (2001). Analysis of Financial Management. National Publishing House, New Delhi.

Bari R.R. (2000). Cash Planning and Management, Triveni Publication, Delhi.

Bierman H.K. And Macdams, A.K. (2001). Managerial decision for cash and marketable securities, New York: Cornell University.

Chiumintto P.M. (2001). A Practical basis for Working Capital Management, in Doris William ed. Hand Book of Business Finance. New York: Prentice Hall.
View Full Essay

Amazon's Cash Cycle'so Much Shorter Than

Words: 818 Length: 2 Pages Document Type: Essay Paper #: 37655552

Amazon's cash cycle so much shorter than that of competitor Barnes & Noble? How does this comparison affect financial management decisions of other retailers?

There are several reasons which explain why the Amazon Company has a shorter cash cycle than its competitor Barnes & Noble. First and foremost, Amazon is a much bigger company than Barnes & Noble both in terms of income and in the number of products that it sells. While Barnes & Noble sells some things besides book and ebooks, this is their primary product. Amazon sells everything including books, although this is a very small portion of their income. Another reason for this is that Amazon is doing better financially than Barnes & Noble. The ebook trend has bitten into Barnes & Noble's income, which they tried to combat by creating their own ereader, the Nook but this was far less successful than the Amazon ereader, Kindle and then Kindle Fire. Unlike Amazon which is highly diversified, Barnes & Noble is dependent on book sales which have continued to decline. Other retailers might look at this scenario and decide to lessen their interests in the sale of print books and to diversify their product so as…… [Read More]

Works Cited

Ross, S., Westerfield, R. & Jordan, B. (2012). Fundamentals of Corporate Finance. 10th ed.

View Full Essay

Cross-Country Capital Flows and Currency International Project

Words: 4386 Length: 17 Pages Document Type: Essay Paper #: 12349729

Cross-Country Capital Flows and Currency

International Project

overseas investment .














Monetary policy is the study of circulation of money, the granting of credit, the making of investments and the provision of banking facilities and international finance is studying it on an international level.[footnoteRef:2] Usually the affect can be seen in exchange rate and foreign investment and international trade. This includes the analysis of global financial markets, cross-country capital flows and currency, international projects, and overseas investments. [2: Merriam-Webster Online Dictionary:]

US Monetary Policies have a far reaching effect on the other side of the world. Primarily due to U.S. Dollar being the reserve and default currency for trade transaction. Every time Federal Reserve decides to make a policy such as the recent Quantitative Easing (QE) where the U.S. will buy $600 billion of treasury bonds to boost economy and rising unemployment…… [Read More]

Works Cited

Alta villa, Carlo, and Matteo Ciccarelli. "The Effects of Monetary Policy on Unemployment Dynamics under Model Uncertainty: Evidence from the United States and the Euro Area." Journal of Money, Credit & Banking 41.7 (2009): 1265+. Questia. Web. 18 Mar. 2011.

Auerbach, Robert D. Deception and Abuse at the Fed: Henry B. Gonzalez Battles Alan Greenspan's Bank. Austin, TX: University of Texas Press, 2008. Questia. Web. 18 Mar. 2011.

Barron, Jacob. "Jobs, Exports and the Yuan: Pressure Builds on China for Currency Reform." Business Credit May 2010: 30+. Questia. Web. 18 Mar. 2011.

Bi, Jianhai. "An Asian Monetary Fund? Jianhai Bi Outlines Asian Efforts to Protect Their Economies during the Global Financial Crisis and Predicts Long and Difficult Negotiations." New Zealand International Review 34.6 (2009): 8+. Questia. Web. 18 Mar. 2011.
View Full Essay

Managing Money Cash Is the Main Basis

Words: 665 Length: 2 Pages Document Type: Essay Paper #: 21830322

Managing Money

Cash is the main basis of financial management in a new company. In most instances, the period between payment of suppliers and employees as well as a collection of debt from the customers is often a challenge. The solution to all these financial challenges is sound financial flow management. Managing of cash flow means delaying expenditures of cash and at the same time ensuring anyone owing the business pays up rapidly.

Managing Cash in a new business

Measuring of cash flow is necessary as accurate financial flow projection helps the business owner to be aware of an upcoming business challenge before it happens. On the other hand, cash flows should not be used to gauge the business environment in the future. There are a number of elements that need to be considered to counter the challenges. The factors are evaluating the payment histories of the customers, business thoroughness in identifying upcoming expenses, and the patience of the business vendors (Land & Taylor 2010).It is also crucial to ensure that receivables continue to come into the business at the same rate the business has been receiving them. Payables need to be extended as they have been in the past…… [Read More]


Stone, R. (September 01, 2001). Managing wealth: A new approach. Journal of Financial Services Marketing, 6, 1, 84-97.

Land, C., & Taylor, S. (January 01, 2010). Surf's Up: Work, Life, Balance and Brand in a New Age Capitalist Organization. Sociology, 44, 3, 395-413.
View Full Essay

Technical Information on the Statement of Cash

Words: 304 Length: 1 Pages Document Type: Essay Paper #: 13760758

technical information on the statement of cash flow, including what the main sections of a cash flow statement are, how to create each of them and what are the main elements that need to be gathered for a successful cash flow statement. The general format of a cash flow statement was discussed in the beginning so as to give an overview of what the CFS should usually contain.

One of the main issues that the document helped clarify was how the activities of a company can be included in one of the three categories mentioned (operating, investing or financing). In each case, the final figure on each of these CFS categories is important to reveal how the company is performing in terms of each specific operation.

Finally, the document referred to the several different methods that can be used to create a cash flow statement, including the advantages and disadvantages…… [Read More]

View Full Essay

Electronic Cash and Smart Cards Forms of

Words: 2004 Length: 6 Pages Document Type: Essay Paper #: 11050138

Electronic Cash and Smart Cards

Forms of electronic cash came about in the 1990s with the rise of the Internet and a new way to do business. Smart cards were among the new forms. When purchasing products over the Internet, consumers have concerns about the privacy of their information with electronic payments. Some studies were conducted to evaluate the pros and cons of smart cards, how the security is designed in the payment systems, and if the use of smart cards can change the addictive behavior of gamblers.


What it is

It is claimed the Mondex smart card can be used the same as cash and have the advantage of not having to carry cash at the same time. It was conceived as a technological solution to the handling of money and undermining the traditional role of the circuit of money. (Knights, 2007) The aim was to replace the need for cash. The Mondex smart card contains a microchip that holds the value of money. It can be downloaded to from a bank account and is held electronically. The card also stores the account holder's name, a unique identification number, and a record of the last ten transactions. (Knights,…… [Read More]


Knights, D. e. (2007). Organization. Retrieved from Sage Publications: 

Nower, L. a. (2010, Jan 19). Gambling Motivations, Money-Limiting Strategies, and Precommitment Preference of Problem vs. Non-Problem Gamblers. New Brunswick, NJ, USA. Retrieved from Springer Science+Business Media, LLC.

Wang, H. e. (2004). Concurrent Engineering. Retrieved from Sage Publications:
View Full Essay

Finance the Fcf-Based Valuation Model Is Based

Words: 1844 Length: 6 Pages Document Type: Essay Paper #: 57398264


The FCF-based valuation model is based on the following formula:

EBIT (1-Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - Capital Expenditure

Investopedia, 2012)

is the free cash flow each year, C0 is the original cash outlay, and r is the discount rate. The free cash flows in this type of calculation are only those cash flows that are incremental to the investment decision. Thus, they do not include such non-cash items as depreciation or amortization expense, and they do not include either sunk costs or non-incremental flows like overhead allocations. The r is the discount rate, and the firm can select its discount rate from a number of different options. The most common, and arguably logical, is the firm's weighted average cost of capital. This reflects the firm's cost of equity, its cost of debt and its capital structure, with allowances for preferred shares as well if the firm has issued them.

There are two underlying logics to this model. The first is that the cash flows must be incremental, because the project should always be evaluated on the basis of its own cash flows, not other factors. The second is that the value…… [Read More]

Works Cited:

Berkman H., Bradbury, M. & Ferguson, J. (2002). The accuracy of price-earnings and discounted cash flow methods of IPO equity valuation. Journal of International Financial Management and Accounting. Vol. 11 (2) 71-83.

Del Vecchio, J. (2000). Dividend discount model. Motley Fool. Retrieved April 27, 2012 from 

Demirakos, E., Strong, N. & Walker, M. (2004). What valuation models do analysts use? Accounting Horizons. Vol. 18 (4) 221-240.

Francis, J., Olsson, P. & Oswald, D. (2000). Comparing the accuracy and the explainability of dividend, free cash flow and abnormal earnings equity value estimates. Journal of Accounting Research. Vol. 38 (1) 45-70.
View Full Essay

HD Low Home Depot Lowe's and Wolseley

Words: 1584 Length: 6 Pages Document Type: Essay Paper #: 18178667


Home Depot, Lowe's and Wolseley are all companies in the hardware store business. Home Depot and Lowe's are primarily American while Wolseley has operations in a number of different companies but has its home market in the United Kingdom. All of these companies are highly susceptible to the economic conditions surrounding the housing market and the general health of the economy overall. This paper will focus on how these companies have fared in the past few years, specifically with reference to their statements of cash flows.

Cash Flow Analysis

For Home Depot, the most significant source of cash is from operations. Cash flow from operations contributed $6.651 billion in the 2012 fiscal year. Most of this derived from the net income. In all of the past five years, the company received most of its inbound cash from operations. In FY2008, this was the only year where Home Depot received inbound cash flows from another funding sources, in that case investing cash flows, which included the sale of a business was the major contributing factor.

The most significant cash disbursements in each of the past five years come from financing activities. In every year except FY2010 and FY2009, the…… [Read More]

Works Cited:

Home Depot 2011 Annual Report

Isidore, C. (2012). Home Depot: Housing market is healing. CNN. Retrieved November 25, 2012 from 

Lowe's 2011 Annual Report

MSN Moneycentral: Home Depot. (2012). Retrieved December 1, 2012 from
View Full Essay

Cheesecake Factory Profitability Analysis 5-Year

Words: 3114 Length: 11 Pages Document Type: Essay Paper #: 15213058

For comparison purposes, it also integrates the industry averages. This tripe presentation of the ratios allows for the comparison of the company's evaluation relative to itself, as well as its current comparison relative to the other players in the restaurants' industry.

Table 4: Financial ratios


5-year average

Industry average

Price to earnings ratio








Debt to equity ratio




Gross profit margin




Net profit margin




Return on equity




Return on assets




Return on invested capital




* The return on equity cannot be collected as the company has not made public the total shareholder equity for 2010, with the last data in the annual report only revealing the equity for 2009.

* Data collected from Reuters and Forbes

Interpretation of the financial ratios:

The price to earnings ratio indicates values lower than the industry averages, revealing as such decreased investor expectations regarding future gains. Nevertheless, it is noted that the P/E ratio has increased when compared to its past values at the Cheesecake Factory, to as such indicate an increasing financial strength and enhancing possibilities for the…… [Read More]


Reimer, M., 2011, Cheesecake Factory expands to Middle East, The Street,  last accessed on July 27, 2011

2010, The budget and economic outlook: fiscal years 2010 to 2020, Congressional Budget Office, last accessed on July 27, 2011

The Cheesecake Factory 2010 Annual Report, The Cheesecake Factory Website, last accessed on July 27, 2011

2011, The Cheesecake Factory Incorporated, Hoovers, last accessed on July 27, 2011
View Full Essay

Capital Budgeting the Projected Free

Words: 2188 Length: 7 Pages Document Type: Essay Paper #: 50044804

But even with no cost savings whatsoever, this project has a positive NPV.

We can see, therefore, that the greatest area of sensitivity is with the terminal value. The terminal value at present is worth $143 million of the NPV. If we break down the variables that go into the terminal value, however, we notice that the cost savings are critical. If SGA expense is not reduced, then the terminal value is reduced to $67 million and the total NPV for the entire project ends up being $98 million. This figure is less sensitive to the change in cost of goods sold.

We should also consider testing combined sensitivity of our shakiest projections. Sales may not live up to expectations and cost savings might not occur. If we assume no net income and no additional cost savings, the project will have an NPV. If we assume that our expectations for these will be cut in half, the project has an NPV of $121million. This is significantly lower than the original projection, but still well above the $95 purchase price.

7) If I were CEO of Nelson, I would approve the purchase, based on its positive net present value. I would,…… [Read More]

Works Cited:

No author. (2009). Free Cash Flow. Investopedia. Retrieved May 13, 2009 from 

Ely, Bert. (2008). Savings and Loan Crisis. Concise Encyclopedia of Economics. Retrieved May 13, 2009 from

Damodaran, Aswath. (no date). Closure in Valuation: Estimating Terminal Value. Stern School of Business. Retrieved May 13, 2009 from

Breierova, Lucia & Choudhari, Mark. (1996). An Introduction to Sensitivity Analysis. MIT. Retrieved May 13, 2009 from
View Full Essay

Tenet Healthcare Corporation Tenet Healthcare Corp This

Words: 799 Length: 3 Pages Document Type: Essay Paper #: 72127542

Tenet Healthcare Corporation

Tenet Healthcare Corp

This paper examines the financial statements of Tenet Healthcare Corporation, reviewing their important components and discussing their interrelationship.

Tenet's annual report for the year ending December 31, 2011 provides information on the firm's financial health. The balance sheets provide information about what the company owns and what it owes. The income statements provide information about how much money Tenet earned and spent, and the cash flow statements show information about the exchange of money between Tenet and other parties.

Tenet's Balance Sheet

Tenet's balance sheet provides detailed information about its assets, liabilities and shareholders' equity. Tenet's assets are what it uses to operate its business, while its liabilities and shareholders' equity are two sources that support those assets. Tenet's liabilities are amounts of money that it owes to others. Shareholders' equity is the amount of money invested in the company combined with retained earnings; together they represent a source of funding for Tenet.

At the end of the fiscal year 2011, Tenet's total assets amounted to $8.46 billion, down slightly from $8.5 billion in 2010. Tenet's cash and cash equivalents are down significantly, from $405 million in 2010 to $113 million in 2011. These…… [Read More]

Reference List

Tenet Healthcare Corporation. (2012). Form 10-K for year ended December 31, 2011. Available at:
View Full Essay

Understanding Financial Reports

Words: 776 Length: 3 Pages Document Type: Essay Paper #: 94120968

Financial Reports

The company that I have selected is FedEx. The homepage of FedEx is located at:

There are other sources of information about the company as well. Its financials and stock information are available at MSN Moneycentral, at the following address:

There are also numerous media sources for information about the company as well. These include Forbes and other business media. For example the following page notes that FedEx is one of the world's most valuable brands:



Return on Assets

Net Profit Margin

Asset Utilization Rate

On these three measures, FedEx outperforms UPS on two of the measures. The company returns a better return on assets, and its net profit margin is higher. However, UPS has a better asset utilization rate. This is in part because UPS has a smaller proportion of fixed assets on its balance sheet, compared with FedEx, and UPS also has more revenue. However, FedEx is the more profitable company of the two, and that gives it a better margin and a better return on its total assets.

Overall, FedEx has a strong financial position. When looking at the different financial variables, it is clear that FedEx is generally a…… [Read More]


MSN Moneycentral (2013). FedEx Retrieved December 8, 2013 from

FedEx. Retrieved December

Forbes. (2013). FedEx. Retrieved December 8, 2013 from
View Full Essay

Lowe's Companies Inc Lowe's Companies Inc Lowe's

Words: 1600 Length: 5 Pages Document Type: Essay Paper #: 66693874

Lowe's Companies, Inc.

Lowe's Companies Inc.

Lowe's Companies, Inc.

Lowe's Companies, Inc.

This report discusses the home improvement retailer, Lowe's Companies, Inc. The report profiles Lowe's, providing information about its background, operations, size, and relative industry position, as well as lists key competitors. The report also includes a profile of the home improvement retail industry and discusses the current economic outlook and sales forecasts through 2015.

The report also analyzes Lowe's consolidated cash flow statements and discusses the company's sources and uses of cash. Lowe's cash inflows and outflows include the issuance of common stock, repurchase of common stock, repayment and issuance of long-term debt, and investments in property and store information technology.

In addition to reviewing Lowe's cash flow, financial analysis reviews Lowe's performance by comparing Lowe's key ratios to industry ratios. In general, ratio analysis shows Lowe's needs to improve its efficiency and generate more sales. Even though Lowe's is the second largest firm in the home improvement industry in terms of market capitalization, the company's performance lags behind its competitors in many areas.

Part I -- Company and Industry Profile

Lowe's is a $50.2 billion retailer of home improvement products and services. The company employs more than…… [Read More]

Reference List

Home Improvement Research Institute (HIRI). "The March 2012 home improvement products market sales forecast grew 3.8% in 2011 with an increase in 2012 to 5.0%." Accessed April 27, 2012.

Lowe's. 2012. "Corporate information." Accessed April 27, 2012. 

Lowe's. 2012. "2011 Form 10-K." Accessed April 27, 2012.

Yahoo! Finance. 2012. "Home improvement stores." Accessed April 27, 2012.
View Full Essay

CFO & PV Finance Departments

Words: 1151 Length: 4 Pages Document Type: Essay Paper #: 83755719

Moreover, many firms do not groom their CFOs to one day take the top position, wary of just such limitations.

In many industries, CFOs are not suited to the CEO role, because their skills do not reflect the key competitive advantages of the firm. However, in many cases the CFO is in the best position to drive shareholder value, and their skills in evaluating and structuring mergers and acquisitions can prove invaluable.

2) 1. The present value of 5700 one year from now at 3.6% interest is $5,501.93. The present value of 8900 two years from now at 3.6% interest is $8,294.14. The combined present value of these two accounts is $13.796.07.

2. At a 5% discount rate, the NPVs of the cash flows are: Year 1 $43.809m; Year 2 $67.120m; Year 3 $57.877m for a total of $168.806m. At a 12% discount rate the NPVs of these flows are: Year 1 $41.071m; Year 2 $58.992 m; Year 3 $47.689 m for a total of $147.753m.

At a discount rate of 10% the NPVs of the cash flows are: Year 1 $41.818M; Year 2 $61.157m; Year 3 $50.338m for a total of $153.313m. At a discount rate of 8% the…… [Read More]

Works Cited

Sandrick, Karen. (1995). From CFO to CEO: What Does it Take to Make the Leap? Healthcare Financial Management. Retrieved July 7, 2008 at

Taub, Stephen. (2003). Now Playing: CFO as CEO. Retrieved July 7, 2008 at

No author. (2005). CFO to CEO. Corporate Finance. Retrieved July 7, 2008 at

Sandrick, Karen. (1995). From CFO to CEO: What Does it Take to Make the Leap? Healthcare Financial Management
View Full Essay

Pepsico Auditors Subsequent Acts Trends Assets Liabilities

Words: 1355 Length: 5 Pages Document Type: Essay Paper #: 17084387



Subsequent Acts





Income Statement Presentation

Income Statement Items

Net Income Trend

Comprehensive Income

Cash Flow Statement

Cash Flow from Operations

Cash Flow from Investing Activities

The annual report of a company contains the information required for outsiders to assess the company's financial condition. In order that this is possible, a substantial amount of information must be gathered and presented in a format common to all companies. The official annual report document, the 10-K, must be filed by all public American companies, and many also include an informal annual report along with this document. This report will analyze the annual report of PepsiCo in order to better understand the company.


PepsiCo's auditor is KPMG. They provide their opinion on page 81 of the 2011 Annual Report. The opinion of KPMG with respect to the financial statements is as follows: "In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of PepsiCo, Inc., as of December 31, 2011 and December 25, 2010, and the results of its operations and its cash flows for each of the fiscal years in the three-year period ended December 31, 2011,…… [Read More]

Works Cited:

PepsiCo 2011 Annual Report. Retrieved February 16, 2013 from

MSN Moneycentral. (2013). PepsiCo. Retrieved February 16, 2013 from
View Full Essay

Functions of Financial Markets and Discusses Why

Words: 3238 Length: 10 Pages Document Type: Essay Paper #: 7792090

functions of financial markets and discusses why a dollar tomorrow cannot be worth less than a dollar the day after tomorrow. Furthermore, the paper explains the cash flows associated with a bond to the investor. And discusses the term "price-earnings (P/E) ratio." In addition, the paper discusses the certainty equivalent approach to estimating the NPA of A project and discusses the problems associated with capital investment process. Lastly, the paper contrasts and compares capital budgeting and strategic planning assesses the agency problems associated with capital budgeting.

Explain the functions of financial markets

The existence of the financial market is just to help and maintain the relations between the users of the capital and the providers of the capital. They also provide an opportunity for both the parties to do transactions with mutual benefits. It is there so that the investor and the investment can do the business smoothly and at ease. They offer a pricing function for both the parties that mean both the seller and the buyer are provided with reasonable evaluation of assets in the financial markets. Then another point that has to be kept in mind is that the financial markets are properly regulated which further motivates…… [Read More]


Bernardo, A., H. Cai, and J. Luo, (2002). Capital Budgeting and Compensation with Asymmetric Information and Moral Hazard. Journal of Financial Economics, 61, 311 -- 344.

Dessein, W., (2002). Authority and Communication in Organizations. Review of Economic Studies, 69, 811 -- 838.

Graham, J., and C. Harvey, (2001). The Theory and Practice of Corporate Finance: Evidence from the Field. Journal of Financial Economics, 60, 187 -- 243.

Harris, M., and A. Raviv, (2002). Allocation of Decision-Making Authority. working paper, Graduate School of Business, University of Chicago.