1. Introduction Working capital management is considered to be a very important element to analyze the organizations’ performance while conducting day to day operations‚ by which balance can be maintained between liquidity and profitability. Maintaining liquidity on daily base operation to make sure it’s running and meets its commitment is a crucial part required in managing working capital. It is a difficult task for mangers to make sure that the business function running in well-organized
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The Basics of Capital Budgeting Integrated Case Study Allied Components Company You recently went to work for Allied Components Company‚ a supplier of auto repair parts used in the after-market with products from Daimler‚ Chrysler‚ Ford‚ and other automakers. Your boss‚ the chief financial officer (CFO)‚ has just handed you the estimated cash flows for two proposed projects. Project L involves adding a new item to the firm’s ignition system line; it would take some time to build up the
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Rick Perry‚ Capital punishment in the state of Texas is legal and unfortunately becoming more common since the death penalty was reenacted in 1976 after a Supreme Court decision. Since this Supreme Court ruling‚ your state has put to death 510 individuals and next week it will be 511 (Texas). During your term as governor you have allowed 310 executions of inmates‚ making that 61% of the total punishments occurring in only 14 years of the 38 total years of the reenactment. Capital punishment is
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Chapter 6 Capital investment:regardless of whether they involve a tangible or intangiable asset. The incestment creates wealth if the discounted value of the future cash flow exceeds the up front cost. The problem is what to discount- stick to these rules: 1. Only cash flow is relevant. Net present value depends on future cash flows it’s the difference between cash received and cash paid out. Cash should be recorded only when they occur and not when work is undertaken or a liability is incurred
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Coca-Cola Company Memo To: From: Date: Re: SEC Project –Coca-Cola Company Purpose: The purpose of this SEC project is not only to understand the accounting concepts deeply by analyzing a company’s reports. We have made the answers to questions regarding Coca-Cola Company’s annual financial report and proxy statement. Meanwhile‚ we also analyzed the information composed in the report filed with the Securities and Exchange Commission‚ in detail‚ and we have confidence in being able to employ
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Probability Distribution Memo To: Howard Gray‚ CEO; Jean Dubois‚ VP Mechanical Watch Division; Uma Gardner‚ VP Production; Amanda Hamilton‚ VP Marketing After identifying the business problem of falling sales and an increase in rejections by the Swiss Official Chronometer Control‚ conducting a study for research will prove to identify a solution. Researchers performed a study of a sample population of 500 people. The study reveals 60% of the watches purchased are certified and the average
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To: Tim McIntyre‚ Vice President for Corporate Communications at Domino’s Pizza From: Date: April 13‚ 2009 Subject: A Comprehensive Crisis Response Plan Purpose This memo will discuss and put forth a communication response plan for the recent crisis in order to mitigate serious public relation failure. Background On Monday‚ April 13‚ 2009 two employees at a Dominos franchise posted five videos on YouTube showing the employees performing various acts of food contamination. These videos
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INTRODUCTION WORKING CAPITAL MANAGEMENT 1. Introduction 2. Need of working capital 3. Gross working capital 4. Net working capital 5. Determinants of working capital Working capital management Working capital management is concerned with the problems arise in attempting to manage the current assets‚the current liabilities and the inter relationship that exist between them. The term current assets refers to those assets which inordinary course of business can be‚or
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to purchase shortwood from an outside supplier and create the opportunity to sell shortwood on the open market as a new market for Worldwide Paper Company (WPC). Now the new woodyard would allow the Blue Ridge Mill not only to reduce its operating costs but also to increase its revenues. The proposed woodyard utilized new technology that allowed tree-length logs‚ called longwood‚ to be processed directly‚ whereas the current process required shortwood‚ which had to be purchased from the Shenandoah
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THE IMPLICATIONS OF CAPITAL STRUCTURE THEORY AND REGULATION FOR SOUTH AFRICAN BANKING INSTITUTIONS By WESLEY NAIDU Submitted in partial fulfillment of the requirements for the degree MAGISTER COMMERCII in FINANCIAL MANAGEMENT SCIENCES In the FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES At the UNIVERSITY OF PRETORIA SUPERVISOR: Prof. JOHANNES HvH DE WET November 2011 -i- ABSTRACT The topic of capital structure has been one that has plagued the academic world for a number of years
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