MBA Accounting

Append below is a snap-hot of all articles relating to Cash Flows Statements:-

The Importance of Differentiating Profit And Cash

Managing Your Company’s Cash-flows

Cash Sufficiency Ratio Of A Company(PartA)

Cash Flow Efficiency Ratio Of A Company(PartB)

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In Part A, we have looked at Cash sufficiency Financial ratio, let’s look at another cash flow ratio namely CASH FLOW EFFICIENCY FINANCIAL RATIO: (more…)

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We have looked at the articles:Profit Versus Cash & Accounting on Cash Basis Versus Accrual basis.We should able to understand that the vein of an organization is its cash flow. We also have reviewed the Cash Flow Statement which is an integral part of the financial statements and a very critical report to see how the company’s monies being utilized. (more…)

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Sometimes, due to unfamiliarity, some managers particularly those without any accounting knowledge might not truly understand what’s Profit and Cash. For them, profit and cash is alway synonymous. They associate highly profitable companies to be those who are highly liquid or have lot of cash in their coffers. In actual fact, failure to understand this simple principle will cause serious repercussion to the financial health of the company. (more…)

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Many times, whether as a junior or senior managers, top managements will harp on the need of good cashflows and the necessity to implement proper cash management. However, even before embarking on cash management we must firstly need to understand about cash operating cycle of a business and what factors that can contribute to more cash into your organization.

Below is an article which enable the reader to understand about cash flow and proposed many ideas for managers to improve their organization’s cash flow.

So let start with what is “cash operating cycle”:-

Cash operating cycle is a close loop cycle which encompasses the five stages of normal operating business cycle:

(a) The receipt of raw materials from suppliers;

(b) Conversion of the raw materials into work in progress and finally to finished products;

(c) Delivery of goods and billings to the customers/accounts receivable

(d) Collection from the accounts receivable and

(e) From the collections utilized to repay the accounts payable. (more…)