DR.Pepper and discussion 2
Shashi_143 .
Discusion_2_response.docxRESPONSE FOR THE DISCUSSION:
In your response to your classmates, 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 your classmates’ 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.
Discussion_
Part-1
Cash enables a business to meet its financial obligations for example payment for stocks, payment for taxes, labor payments, and many more. Cash generation is a strong indicator of the overall financial performance of a business. For example positive cash flow indicates that a business is thriving while a negative cash flow shows that a business is not performing well and may experience difficulties in running affairs. Cash generation also forms the basis of profit or loss. The difference is that in a cash flow statement, we get to record all day-to-day cash that is received or spent while in a Profit and Loss Statement, only the totals are recorded after a given accounting period. Daily monitoring of cash flow statements. Companies usually monitor the cash flows regularly in order to avoid irregularities or omissions. Cutting on costs. They do this by minimizing expenditure costs in order to maximize profits. Asking for partial payments or deposits for orders that have been gotten.
Part-2
Financial analysis helps in assessing the current financial position and operational efficiency. For example, The Statement of The Financial Position is a good report of the financial position of a business. Financial analysis is used to compare past performances and present performance to understand how the business grows. For example, the Profit and Loss Statements show that profitability can be used to know whether the business is performing well or not. This is to ensure that the business is not spending its own cash reserves to fund impending orders and enables it to stay afloat. Sometimes a business may delay payments to vendors until the stocks are nearly finished to ensure that there are no costs associated with dead stocks
References:
Iatridis, G. E. (2016). Financial reporting language in financial statements: Does pessimism restrict the potential for managerial opportunism? International Review of Financial Analysis, 45, 1. https://doi.org/10.1016/j.irfa.2016.02.004
Lexa FJ, & Berlin JW. (2005). Financial modeling in medicine: cash flow, basic metrics, the time value of money, discount rates, and internal rate of return. Journal of the American College of Radiology, 2(3), 225–231. https://doi.org/10.1016/j.jacr.2004.09.004
William E. Hardy Jr., Howard W. Haynie Jr., J. Lavaughn Johnson, & Neil R. Martin Jr. (1990). Determination of Features That Should Be Included in Microcomputer Farm Financial Analysis and Planning Software. Journal of ASFMRA, 54(2), 76.
