Cash Flow Forecast Statement in Hidetoseek Ltd Assignment

Essays on Cash Flow Forecast Statement in Hidetoseek Ltd Assignment ï » ¿Cash Flow Forecast Statement in Hidetoseek Ltd. Table of Contents Solution 1 2 Solution 2 3 Solution 3 4 Solution 4 5 Solution 5 6 Bibliography 7 Solution 1 Cash Flow Forecast Statement for the period of June 01, 2010 to November 30, 2010 Particulars June July August September October November Opening Balance (4,500.00) (9,754.60) (36,788.23) (23,232.09) (10,592.23) 1,117.77 Sales 18,500.00 16,500.00 18,000.00 17,000.00 20,000.00 18,000.00    14,000.00 6,745.40 (18,788.23) (6,232.09) 9,407.77 19,117.77 Purchase 12,400.00 35,000.00 - - - - Annual Factory Rent 4,000.00 4,000.00 - - 4,000.00 - Salaries and Wages Expenses 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 Cost of Heating and Lighting 360.00 360.00 360.00 360.00 360.00 360.00 Interest on capital and long term loan 650.00 650.00 650.00 650.00 650.00 650.00 General expenses 780.00 780.00 780.00 780.00 780.00 780.00 Tax Liability 3,000.00 - - - - - Total Expenses 23,690.00 43,290.00 4,290.00 4,290.00 8,290.00 4,290.00 Gross Balance/(Overdraft) (9,690.00) (36,544.60) (23,078.23) (10,522.09) 1,117.77 14,827.77 Less: Interest on Overdraft 64.60 243.63 153.85 70.15 - - Closing Balance/(Overdraft) (9,754.60) (36,788.23) (23,232.09) (10,592.23) 1,117.77 14,827.77 Note: Assumption is made that overdraft limit has been increased with same rate of interest. Solution 2 Analysis of Hidetoseek Ltd’s cash flow from June 2010 to November 2010 shows that company’s liquidity ratio is picking up from August 2010. From June 2010 till July 2010, Hidetoseek Ltd has shown steep decline on liquidity position of the company due to decrease in cash in hand. Reasons behind reduced cash amount in month of July are because of decrease in monthly sales or revenue and increased liability and expenses. In the month of June, Hidetoseek Ltd adopted new strategy of bulk buying. This strategy adopted for getting price discounts on raw materials purchased form United Kingdom has increased liability in June and expenses in July. In July, the company had to pay the whole credit amount because of its credit agreement between Hidetoseek and United Kingdom suppliers. These lead to the wide difference between revenue and expenses. It is from August that the company cash flow is showing positive flow of profit. Only in the month of July, cash flow has declined because of huge liability payment made by company for its bulk purchase of raw material. In the coming six months period, main issue that Hidetoseek managers can face is that of increasing sales. The second major question in front of company is how to fill this cash huge gap of loss and profit and the third issue will be if diversification will be helpful to enhance profitability. Huge gap will lead to liquidation problems. Cash helps fulfilling working capital needs of every organization and for formulating reinvestment too. So, increase in incoming cash flow is very essential for Hidetoseek’s growth in future. Solution 3 Profit and cash are both very different accounting terms used for different purposes. Profit is what we get when we deduct all expenditures like purchase and manufacturing costs, selling and administrative expenses from sale. Profit consists within both transactions i.e. credit and cash sale. But cash of the business represents only cash transactions. Form the following cash flow analysis of Hidetoseek Ltd., the company is facing liquidity deficit in the month of June which is followed by the huge crisis in July. Hidetoseek Ltd. has large portion of fixed cost and small portion of variable cost. This limits the great fluctuations in cost incurred by company. On the other side, its sale or revenue is increased compared to previous month. When purchase and all operational expenses are deducted form company’s total sale it has been analysed that Hidetoseek has made profit in this month of June but due to extra expenses on payment of tax liability and outstanding rent of May its cash balance has reduced. Due to cash deficit faced by Hidetoseek in the month of June its liquidity position declined. Liquidity position of any company is directly related to cash and those equivalents of cash. Solution 4 Diversification of product helps in diversifying risk associated with single product entity. It also increases target market segment and opens more opportunities to capture the market. Hidetoseek’s investment to machinery for production of leather wallet is  £ 120000. The main two sources of finance that Hidetoseek can get are through issuing right issue or long term loan. It is right issue because as per the company’s performance a chance of getting IPO is less. Its advantages are it will get the requisite funds, don’t have to pay interest, increase market capitalization and most important its stakeholders will be motivated. Disadvantage faced by Hidetoseek will have to give discount per share. Second method that can be adopted for getting finance is through long term long. Its advantage is that of easy availability of cash. Disadvantage related to this option is Hidetoseek will be legally obligated to pay interest on principle amount and also there will be long term increase in liability. Solution 5 Hidetoseek Ltd. is formulating its new strategy for importing raw material. Earlier it has been supplied with raw materials, accessories and leather form United Kingdom companies. Target market of Hidetoseek is that of high end customers. There most important element in Hidetoseek’s products will be focused on quality. South American market products are cheap but of low quality and this may lead to decline in brand image of company and also decline in sale margin in the long term. The second issue Hidetoseek can face is increasing operational cost due to increase in transportation cost of raw materials from South America. Operational cost will also increase because of trade policies followed by South American government and fluctuating global market effect on South America currency. If currency value rises Hidetoseek would have to pay increased price to the importing companies whereas United Kingdom companies are offering them discount in bulk purchasing of raw material. Purch ase of raw material form United Kingdom will help them to reduce transportation cost with enhancing strong relationship which will help them in long run. If Hidetoseek import raw materials from South America, it has to face country risk, currency risk and also quality risk. Bibliography Dropkin, M. Et. Al, 2007. The Budget-Building Book for Nonprofits: a step-by-step guide for Managers and Boards. John Wiley and Sons. Jawaharlal, 2002. Cost Accounting. Tata McGraw-Hill. Khan, M.Y., 2004. Financial Management: Text, Problems And Cases. Tata McGraw-Hill. Khan Jain, 2005. Cost Acc Fin Mgmt Ca Pe Ii. Tata McGraw-Hill. Khan Jain., 2000. Cost Accounting. Tata McGraw-Hill. Linzer, R Linzer, A. 2006. The Cash Flow Solution: The Nonprofit Board Member's Guide to Financial Success. John Wiley and Sons. McMillan, E.J., 2010. Not-for-Profit Budgeting and Financial Management. John Wiley and Sons. Nigam, B.M.L., 2004. Cost Accounting: An Introduction. PHI Learning Pvt. Ltd. Pizzey, A., 1989. Cost and Management Accounting: An Introduction for Students. SAGE. Rainsford, P. Bangs, D.H., 2000. The Restaurant Start-up guide: a 12-month plan for Successfully Starting a Restaurant. Kaplan Publishing.

Substantial Problems on Industrialization Free Essays

At the turn of the century, a spirit of reform known as progressivism took hold of many American people. Less a united movement than a loose gathering of casual and improbable alliances, progressivism targeted the massive problems of an urban, industrialized nation. In spite of resistance, progressives were able to redefine government†s role in American life, make a serious run for the White House, and ratify such lasting reforms. We will write a custom essay sample on Substantial Problems on Industrialization or any similar topic only for you Order Now In the nightfall of the 1800†³s, many citizens could see that existing efforts to solve the substantial problems of industrialization were failing. The 1880†³s and 1890†³s were filled with lively debates about how to reform society. The ideas of journalists Henry George and Edward Bellamy were among the most popular. In 1879 Henry George had written a book Progress and Poverty in an effort to explain why an advanced civilization seemed to increase rather than eliminate poverty. George proposed to solve this problem by ending taxes on improvements on land, such as housing and cultivation. George proposed just a single tax – on the value of land itself. Such a tax would make a speculation in land less attractive by increasing the cost of holding land without using it. In 1888 newspaper editor Edward Bellamy published a novel called Looking Backward. Incorporated into the novel was the story of a man being hypnotized and waking up in the year 2000. All of the harsh working conditions, social class set backs, and political corruption that existed in 1887 no longer existed. The reason for such a change was that government had nationalized the great trusts and organized industrial management. Socialists, unionists, and city government reformers also had many followers. Progressives realized that the nation†s free enterprise system often could be unfair, but they did not want to lose the high standard of living and personal liberty it had given them, and they deeply feared the violence of revolution. Thus, progressives were faced with the question of how to preserve what was good about the United States while reforming the bad. In order to protect vulnerable citizens, progressives accepted an increased level of government control over areas once considered private, such as housing and healthcare. Florence Kelley became a leader in the search for answers. She soon became a resident in Jane Addams† Hull House in Chicago. Largely through her efforts, in 1893 Illinois passed a law prohibiting child labor, limiting working hours for women, and regulating sweatshop conditions. In 1954 Supreme Court justice Felix Frankfurter said that Florence Kelley â€Å"had probably the largest share in shaping the social history of the United States during the first thirty years of this century. † Driven by the mounting tide of public demand, an inundation of progressive reform programs flowed through local, state, and federal legislatures. Targets for the proposed reforms included politics, society, and the economy. Some reform mayors led movements for city – supported welfare services. Hazen Pingree provided public baths, parks, and, to combat the 1893 depression, a work relief program. â€Å"Golden Rule† Jones opened playgrounds and free kindergartens and built lodging houses for the homeless. â€Å"Nobody has the right to rule anybody else,† he once said. He thought all people would be good if social conditions were good. Progressive governors and state legislators also were active. Governors Robert LaFollette in Wisconsin and Hiram Johnson in California introduced reforms to make government more efficient and responsive to voters. Progressivism appeared at the federal level in labor and industrial relations, in the regulation of business and commerce. By the time Theodore Roosevelt completed his second term in 1909, the government had filed forty – two antitrust actions. The beef trust, Standard Oil, and the American Tobacco Company were either broken up or forced to reorganize. Roosevelt was not antibusiness. He did not wish to destroy trusts he deemed â€Å"good,† or not harmful to the public, he just felt they should be supervised and controlled. The progressive era also gave way to they sixteenth and seventeenth amendments. The sixteenth amendment allowed government to raise more revenue from wealthy people†s income and less from tariffs that hurt the working poor. The seventeenth amendment took the election of senators out of the hands of legislature; voters were thus allowed to play a more direct role in government. By the mid – 1910†³s, progressives could take pride in the many changes they had helped bring about, such as redefining the role of government in business and politics. Some reformers included Henry George, Edward Bellamy, Florence Kelley, and the nation separated as local, state, and federal. The beginning of the war in Europe brought about the end of the progressive era in 1914, by the end of 1916 the reform period of the United States had sputtered out. How to cite Substantial Problems on Industrialization, Essay examples

Impact of Readymade Garments on the Economy of Bangladesh free essay sample

But thisis not the end of their suffering – they faceabuse in the workplace, sexual harass-ment and rape, and even death. Death Trap On 23 February 2006 a ? re broke out at KTS Garments in Chittagong. Specialarrangements were made on that day foran emergency night shift; food wasarranged for about a thousand workers. But how many of the workers could escapethe deadly ? re? Nobody knows for sure,even today. I personally visited the factory three days after; yet I met many who werelooking for their daughters, sisters or rela-tives who were working in hat factory. Even after three days nobody was allowedto enter the factory. I managed to take aquick look in different areas up to thethird ? oor. Hundreds of small bags usually carried by female workers were here andthere. I found those totally empty. Whohave stolen the â€Å"precious† things fromthese bags? No one was allowed to enterafter the ? re broke out; the factory wasstrictly guarded by police and the Rapid Action Battalion ( RAB ). We will write a custom essay sample on Impact of Readymade Garments on the Economy of Bangladesh or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The workers didnot have much money to be looted. Theonly thing they had – very important tothem – was their ID ard, which was theonly proof of their identity and their link with the factory. That was the main proof to identify and count the dead and injured,and to make a claim for compensation. The owners had every reason to takethose cards away. Possible claims for com-pensation also explain the unwillingnessof many employers to give appointmentletters to the workers. Since the early 1990s, more than athousand people, mostly teenage girls,lost their lives in different garment facto-ries because of either? re, or collapse of an un-authorised factory build-ing, or secret killing by goons or in police ? ing. Some factories reported-ly kept their gates closedduring ? re incidents. On6 January 2005, duringa ? re at Shaan Knittingand Processing in Naray-anganj, all the gates of the building werekept locked. The incident claimed 23 lives. The collapse of a nine-story garmentfactory building at Savar near Dhaka on11 April 2005 caused more than 100 workerdeaths and another 100 workers missing. Suddenly turned into a mass grave, thefactory had been producing nearly 80,000items of clothes annually for the marketsof Europe and the US This building wasconstructed without proper authorisation. A ? re in a building that housed SaiemFashions and other garment factories,killed three workers and injuring 50 inMarch 2006. Three more factory accidentsoccurred in early 2006, two in Dhaka andone in Chittagong, leaving at least 142 workers killed and more than 500 injuredmany of them disabled for life. Newspaperreports made it clear that all these acci-dents took place due to lack of propersafety measures a t the factories. Thesereports also revealed the fact that according to of? ial statistics, only threeinspectors are engaged in inspectingsafety measures at as many as 15,000factories under the Dhaka divisional fac-tory inspection of? ce. And only 20 in-spectors are now deployed to inspectaround 50,000 registered factories in thecountry – four of them are working at thehead of? ce, six at the Dhaka divisional of-? ce, and three at Chittagong, Khulna andRajshahi divisional of? ces ( Daily Star ,28 February 2006). The following list of factory ? res anddeaths was published in The Daily Star on27 February 2010 after another deadly fac-tory ? e. Development or Destruction, Essays onGlobal Hegemony, Corporate Grabbing and Bang-ladesh, Sraban. New Age (2010): â€Å"Exploiting the Economy Builders† by Mohiuddin Alamgir, New Age Extra , 13-19 August, www. newagebd. com. Sobhan, Rehman and Nasreen Khundker, ed. (2001): Globalisation and Gender (Dhaka: UPL). Sweatfree (2010): â€Å" Fighting Poverty Wages in Bangla-desh† at http://www. sweatfree. org/docs/ene-miesofthenation. pdf, December. Workers World (2006): â€Å"Garment Strike in Bangla-desh: Whose Responsibility, Whose Interests? †,June. . ? . ? . . . impact of readymade garments on the economy of bangladesh