Budgeting is the foundation of every financial plan of operation. A sound budget comes from understanding how much money you have, where it goes, and then planning how to best allocate those funds for a company. A financial budget is a financial plan that is structured to note projections on incomes and expenses on both a long and short term basis. Budgets incorporate budgeting strategies for a period of at least one year, although in some case organizations may prepare a budget to cover from anywhere to two to five years at a time. (Tatum, 2012) There are numerous reasons that a budget is important.
What is the relationship between an operating and a cash budget? Why is it important for an organization to prepare a cash budget? According to "Cliffnotes.com" (2012), “The cash budget is prepared after the operating budgets (sales, manufacturing expenses or merchandise purchases, selling expenses, and general and administrative expenses) and the capital expenditures budget are prepared. The cash budget starts with the beginning cash balance to which is added the cash inflows to get cash available. Cash outflows for the period are then subtracted
The government assesses whether YAG meets the criteria to claim the government grant and be tax exempted based on annual audited financial statements and YAG has recently negotiated two new grants from this grantor. In addition, YAG’s main sources of income include donations, visitor fees, membership subscriptions,
Financial ratios have more impact when compared over several years to help identify trends. To illustrate the use of financial ratios we will compare the 2007 financial ratios of Tootsie Roll Industries and Hershey Company. These companies are engaged in the manufacturing and sale of confectionery products. The performance ratios will be based on liquidity, solvency and profitability. These ratios will be calculated from the income statement, balance sheet and statement of cash flows Liquidity Liquidity Ratios measure a company’s ability to meet its short-term debt obligations without disrupting normal operation.
According to Investopedia, a stakeholder is a party that has an interest in an enterprise or project. The primary stakeholders in a typical corporation are its investors, employees, customers and suppliers. However, modern theory goes beyond this conventional notion to embrace additional stakeholders such as the community, government and trade associations. (Investopedia 2012) The familiar obstruction that develops with having several stakeholders in an organization is they have an assortment of self - motivating agenda’s that may not be congruent to each other. The fact is that they or more than likely in discord with the other faction.
It is the responsibility of Retail Banking to ensure that payment for expense is processed in the first instance and that secondly an adjustment allocation is charged back to both Commercial Banking and Financial Planning cost centres for the expense. The cost allocation basis that is utilised is calculated on the amount of floor space that is allocated to each department which also has a direct correlation to the number of full time equivalent staff. The cost allocation is agreed prior to each financial year by the stakeholders namely the Heads of Retail Banking, Commercial Banking and Financial Planning and is reviewed annually. Once agreement has been reached the outcome is communicated to relevant parties prior to the reporting period. The allocation of space and staff numbers for the reporting period 1st July 2013 to 30th June 2014 are detailed below.
This essay analyzed the information contained in Wal-Mart’s balance sheet and income statement and determined that the assets listed under the company’s current assets list were listed in the proper order. Also contained in this essay is how these assets are classified and how they are separated into the cash and cash equivalents. A comparison of the company’s total current liabilities at the end of its most recent annual reporting period with the total current liabilities at the end of the previous annual reporting period showed the continued growth of Wal-Mart. Finally, attention was placed on all the information within these documents and shown how this information is utilized by potential creditors, current investors, and prospective employees to seek out opportunities within the Wal-Mart
Running Head: FINANCIAL 1 Financial Analysis Mariah Gray ACC205 Keith Graham 05/05/2014 FINANCIAL 2 When operating a business there are many things that you have to take into consideration. Sales and profit is a major factor in decision making. Another thing to consider is product or services. When you are selling these things, you have to decide what kind of customer you want in your business. Whether it can be something you pay up front, or something customers can pay monthly as they go.
The pro forma statements are commonly used when applying for a business loan. Typically, the investor will require a business owner to submit a pro forma statement with the loan application. Company’s carrying inventory must have a pro forma statement that would show the impact of the amount borrowed on the current assets and will also show the liabilities on the current balance sheets. This provides management with realistic numbers of the amount of cash required by the company. There are a wide variety of ways one can benefit from the pro forma
Laws and regulations have imposed new requirements on staffing procedures. The potential liabilities for violations of the law have increased significantly. Staffing can no longer simply concern itself with securing the right number and quality of employees to perform the work of the organization, but to carry out its tasks in statutory guidelines. Procedures, practices, and policies must conform to the law or the organization exposes themselves to the risk of investigations or legal actions. Wells Fargo is a corporation that employs over several hundred thousand associates that supply financial services to customers in the United States.