Read the document carefully before responding

Total 1000 words( please follow instructions carefully)

paper 1-part 1-300-350 words

paper 2-part 2-200-250 words

paper 3-3 responses-150 words response each (3 responses-450 words)

Write 300-350 words for part 1, Write 200-250 words for part 2 and respond to three articles with 150 words each.

Part 1: Importance of Cash

Generating cash is the ultimate responsibility for managers today. Cash and cash flow are considered the "lifeblood" of a business.

How important has cash generation been for your current company or a prior employer? How is cash generation different from the concept of profit and loss (P&L) in accounting? Provide an example of how a company manages cash flow.

Part 2: Application of Concepts/Financial Analysis

Review the materials in the link below(Please refer to the other doc attached for material). Based on the materials presented in this link, discuss why financial analysis is important in the overall understanding of the financial performance of a firm. Be specific and give examples based on your experience or research.

3 Responses

Instructions

In your response to the discussions posted, consider comparing cash generation techniques at your company versus his or her company. Draw distinctions based on the industry and tell your colleagues why those distinctions are necessary for the management of cash flow.

Below are additional suggestions on how to respond to discussions:

· Ask a probing question, substantiated with additional background information, evidence or research.

· Share an insight from having read your colleagues’ postings, synthesizing the information to provide new perspectives.

· Offer and support an alternative perspective using readings from the classroom or from your own research.

· Validate an idea with your own experience and additional research.

· Make a suggestion based on additional evidence drawn from readings or after synthesizing multiple postings.

· Expand on your colleagues’ postings by providing additional insights or contrasting perspectives based on readings and evidence.

1) Respond to 1st article with 150 words

Cash flow is specified as a bi-directional flow of cash in a business which is in the form of profits and losses. This is a crucial factor for a company because it provides information on the nature of cash that includes positive cash flow and negative cash flow. In that, positive cash flow can enable business people to run the daily operations, payroll of employees, and to pay the taxes. This also helps companies to invest in various businesses that will turn into more revenue and employment.

The financial analysis in an organization can deliver the cash related information where experts use this information to assess the financial deals of business. Moreover, it provides information that mainly relates to the financial report which is necessary to do financial summaries for future goals. So distributing these fiscal reports will help the board to speak with the better-intrigued gatherings from outside. However, it provides good and better data that helps in assessing the best assets for a business enterprise (Khramov, 2012).

Cash is important for everyone because it is the one that is used as the mode of purchasing. This cash flow will be the net change of the company which helps in positioning the better periods. In this cash flow, positive and negative cash flow are two types which help in providing the information of cash flow with the practical data. In that, negative cash flow can lead to more cash outflow than receiving the money to an organization where it represents the loss of business. So cash flow is the procedure of an organization that represents outflow and inflow of cash.

Then the financial analysis is the process of analyzing that includes information about the interpretation and analysis of the various financial statements. This financial analysis will also involve examining the financial statements of an organization within better decisions. Those decisions are crucial because it is the one analysis which also provides information about the strengths and weaknesses of an organization and their business (Barnea, 1972).

References

Barnea, A. (1972). A Note on the Cash-Flow Approach to Valuation and Depreciation of Productive Assets. The Journal Of Financial And Quantitative Ana

Khramov, V. (2012). Asymmetric Effects of the Financial Crisis: Collateral-Based Investment-Cash Flow Sensitivity Analysis. IMF Working Papers, 12(97), 1. https://doi.org/10.5089/9781475502879.001

2) Respond to 2nd article with 150 words

Part - 1

Cash generation will be a crucial one to the organization where it is also easy to compare and measure. This cash generation is tangible because it measures in standard units only. Cash flow can help two different organizations and there is no matter how different they are because cash generation is significant, as it is complex to fake. There are also various ways to inflate profits and also to increase the asset values where they can help more in achieving success in an organized manner. Cash generation will be accepted as one of the better values around $40 million in cash. So cash and profit are different parameters in every business. This cash flow can also enable business organizations to focus on spending excess cash because of the profit of spending the amount when business gains better production, efficiency in selling products, and operating something within the estimated cost in an organization (Narayan & Westerlund, 2014).

Part - 2

Financial analysis of a certain company can enable in making a better investment decision that helps in reasoning. Most of the companies will decide to employ an analyst to analyze the weaknesses and strengths of the company because some of the companies may think to utilize financial consultants where they perform the financial analysis at only a particular time. This analysis helps people to analyze the financial weakness and strength of a company. However, it can help in assessing various types of assets that are owned by business organizations, and based on that, it helps in assessing liabilities. The financial analysis can provide better data on the cash position of a certain company and it also provides the information on all the debt that the company has. So, financial analysis is the process that helps in assessing the managerial significance of an organization (Khurana et al., 2006).

Reference

Khurana, I., Martin, X., & Pereira, R. (2006). Financial Development and the Cash Flow Sensitivity of Cash. Journal Of Financial And Quantitative Analysis, 41(4), 787-808. https://doi.org/10.1017/s0022109000002647

Narayan, P., & Westerlund, J. (2014). Does cash flow predict returns?. International Review Of Financial Analysis, 35, 230-236. https://doi.org/10.1016/j.irfa.2014.10.001

3) Respond to 3rd article with 150 words

Cash Flow and Financial Analysis

As Humans can’t survive without water and food the same way any business can’t survive without continuous cash flow. Generating cash is the primary goal of any business. In every business cash is required for various business operations like providing salary to employees, buying and investing in new facilities, and investing in R&D. If you want to check the growth and reputation of any organization cash is the primary parameter which is taken into consideration. Cash flow also signifies that how any organization pay their bills and expense on time (Tingbani, 2018). Cash flow during the life cycle of any business is important for the sustainability of any organization. For example, any organization provides and services based on specific terms and payments but if they don’t receive their payment on time company will able to conduct their smooth operation. If they receive their payment on time it helps organizations in the smooth conduct of their organization. If financial terms profit and loss of any organization are measured by deducting operating expenses from revenue in that financial year. Cash generation is not related to the profit and loss of an organization. Cash flow helps the organization is paying the payment on time to their supplier, vendor and other regulatory agencies (Medda, 2019).

Any organization releases the financial statement to share the credibility in the market. If you are a financial person than evaluating all four financial statements of an organization helps customers, shareholders, and investors in understanding their operation and performance. Financial statement analysis can be useful for evaluating future financial performance. If you want to analyse the financial condition of any organization, you have to compare various financial ratios. Each and every ration have their individual importance so evaluating multiple ratios at a time will give a clearer picture of any organization. The financial statement also helps any organization to compare themselves with their competitors. Investors also invest in those organization which has sound financial a condition which is measured by financial statement (He, 2020).

References:

Afrifa, G. A., & Tingbani, I. (2018). Working capital management, cash flow and SMEs' performance. International Journal of Banking, Accounting and Finance, 9(1), 19-43.

Lo, Y. C., & Medda, F. (2019). Bitcoin mining: converting computing power into cash flow. Applied Economics Letters, 26(14), 1171-1176.

Zhang, H., Zhang, Y., Zhou, S., & He, Y. (2020). Corporate Cash Holdings and Financial Constraints—An Analysis Based on Data on China at Company Level after the Global Financial Crisis. Emerging Markets Finance and Trade, 56(7), 1490-1503.