| Topic : Managing Working Capital |
|
|
|
Activity:
103 views;
last activity : 01 01 2011 16:57:42 +0000
|
|
|
|
1
Helps to know the present state
2
To identify Long term and Short term uses
3
LIFE BLOOD OF BUSINESS
4
rrrrrrrrrr
5
To know the operations and investments..
6
Cash is King
7
Adds accountability to the financial statement
8
Inflow & Outflow......
9
Cash will control by cahflow statement.
10
Highlights the Source of funds and its application
11
Cash Flow
12
Items which incur losses are to be shown in CFS
13
Sant Kumar Mandelia
14
show net increase or decrease in working capital
15
In Allocation of funds judiciously for interedependent activities to generate more cash inflows
16
Simply tells capital requirement/flow
|
||||||||||||||||||||||
|
|
Cash is the lifeblood of your company. The cash flow statement reports your business' sources and uses of cash and the beginning and ending values for cash and cash equivalents each year. It also includes the combined total change in cash and cash equivalents from all sources and uses of cash. |
6
|
I guess new GAAP rules does not mandate Cash flow any more, Please check.... Here is what I found from Yahoo Answers "Under Indian GAAP (AS 3) , inclusion of Cash Flow statement in financial statements is mandatory only for companies whose share are listed on recognized stock exchanges and Certain enterprises whose turnover for the accounting period exceeds Rs. 50 crore."
|
It is basically meant for identify Long Term Sources/ Applications and Short Term Sources/ Applications. While long term sources can be applied to short term applications, short term sources should never be applied for long term applications, which will adversely affect the financial position of the company. In addition to this (a) a company may make profits but short of cash and (b) and a company may be in losses but in surplus cash. Cashflows will help proper creditors/debtors management thereby resulting in proper cash management.
|
3
|
I agree with Mr Murthy in toto.
|
|
Cash flow statement helps identify the liquid position of the firm and the capabilty of firm to pay its short term obligations and other routine exps, it also shows the CASH 2 Cash cycle of the firm which means that how much time does it takes for the firm to actually convert the cash from its activities and how the firm is able to deploy the most liquid source of business how efficiently and how effectively... |
1
|
A cash flow statement, when used in conjunction with the rest of the financial statements,provides information that enables users to evaluate the changes in net assets of an enterprise, itsfinancial structure (including its liquidity and solvency) and its ability to affect the amounts andtiming of cash flows in order to adapt to changing circumstances and opportunities. Cash flowinformation is useful in assessing the ability of the enterprise to generate cash and cashequivalents and enables users to develop models to assess and compare the present value of thefuture cash flows of different enterprises. It also enhances the comparability of the reporting of operating performance by different enterprises because it eliminates the effects of using different accounting treatments for the same transactions and events. Historical cash flow information is often used as an indicator of the amount, timing and certainty of future cash flows. It is also useful in checking the accuracy of past assessments of future cash flows and in examining the relationship between profitability and net cash flow and the impact of changing prices.
|
|
A cash flow Statement forcasts the Availability & requirement of cash in future so that we shall be able to make payment to vendor & payoff d exp. in time. cash flow management makes a better control on expenditures and collection of fund. in many seasion based industries like sugar where cash is not generated throughout the year but requirement of cash remains whole year cash management is best technique. morever in industries like tea, sugar, service
sector working capital is financed by the bank on the basis of cash flow.
|
0
|
|
Cash flow statement describes mainly on cash in and cash out of business. the cash in is the income from the business and the cash out shows any bills, vendors, etc payment so that you will know the operating cost and the investment from this.
|
0
|
|
Cash is king. Each and every organization plans for cash inflow and outflow from the begining of the financial year thru budget and compares with actuals at the closing of the financial year. To know the operation cost, working capital, longterm and short term investments and financing activities of an organization a cash flow is a feasible tool for the management. |
0
|
|
|
0
|
|
Cash flow statement records the inflow and outflow of cash over a period of time......
|
0
|
|
The cash flow statement is intended to provide information on a firm's liquidity or solvency. The cash flow provides a clear understanding of a company's financial resources at a given point in time.Operating activities represents the incoming and outgoing cash activities to run the day-to-day operation of a business A cash flow provides an investor insight into a company's credit worthiness and overall financial health. While for a company the cash flow is one of the major components for budgeting efforts and future planning. |
0
|
|
The statement will highlight the inflow of funds from operations and other sources such as borrowings and equity. It also will highlight the application of the funds for working capital and in investments such as Plant and Machinery/Financial assets. Essentially it will enable us to make a judgement of the prudent use of the cash from operations and other sources of finanace |
0
|
|
|
0
|
|
Cash Flow Statement also includes those items which are not directly involved in cash payment such as amount written off against Goodwill or Preliminary expenses, depreciation etc.these are the items for which no payments is made but, which incur losses.
|
0
|
|
|
Cash flow is an abstract showing how funds are flowing in in order to meetout day to day expenses of the business centre,This results framingout effecient Purchase and Service Plans.This provides how we can contribute to other business centres and Head office.Effective control over Debtors and Creditors are possible.
|
0
|
|
the cash flow statement show the net increase or decrease in current assets and current liabilities,and difference between both show net increase or decrase in working capital. which shows how efficiently cash manage by the organisation
|
0
|
In Allocation of funds judiciously for interedependent activities to generate more cash inflows
|
Every thing in Business has to be finally derived in terms of rupees and Paise.
A combination of various activities define a business model. Each activity with certain budget allocation tries to accomplish a given task.
Cash flow statement even on weekly or fortnightly basis shows up the out flow and inflow and whether they are in accordance with the budget and if not what corrective actions have to be initiated.
Out flow is within internal control where as cash in flows are an out come of effort put in by the organization.
|
0
|
|
It simply helps to know working capital requirement to be met, so that manager can arrange funds without any lack of funds/cash to meet the day to day needs without any deficiency at the same time surplus cash is invested appropriately.
|
0
|
|
|
Technology is the mantra of today's progress and development in any sector-Technology is here to... |
|
|
752 referals
9 arguments,
423 views
|
|
|
Choosing a profession can be hard, choosing a job can be even harder. Today's job market is not... |
|
|
0 referals
3 arguments,
300 views
|
|
|
Researching your market prior to entering is a sound decision for any business owner.... |
|
|
904 referals
32 votes,
485 views
|
|
|
|
|
|
|
|
|
|
139 referals
2 votes,
60 views
|
|
|
When we are watching news channels or any other channel or reading news papers you bump upon... |
|
|
2022 referals
12 votes,
283 views
|
|
|
we all know the perils of talking on cell phones while driving. besides being hazourdous to... |
|
|
290 referals
2 votes,
36 views
|
Mam, when someone publishes a study or research it means there is fair amount of truth into it. You just cannot brush off the matter saying it is fake. If so then you should resonate. |
Thanks Manish btw many here are too old for this :) MR. Murthy the link of your blog :) |
As such I am not satisfied by the sides given. But the question that should be raised is that why should there be an increase. They already have enough what more do they want? |