THE IMPACT OF CASH-FLOW STATEMENT ON CORPORATE ORGANIZATION

 

 

Abstract

This research work critically examines the impact of cash flow statement in an organization. The broad objective of this study is to examine the relationship between operating cash flows and corporate performance and also to examine the correlation between investing cash flows and corporate performance. The primary source of data collection was used in the study and data for the study were collected through the use of questionnaire. 60 questions were administered and fifty eight (58) were returned. The responses were then analyzed using the simple percentage method and the chi-square denote by a Greek symbol (X2) to test the hypothesis. The findings showed that there is a significant relationship between cash flow statement and corporate investment and that cash-flow statement impact on organization performance. However, it was recommended that in improving their performance and cash flow, corporation should seek to improve their investment policy since increase investment lead to more cash flows for the organization

 

CHAPTER ONE

INTRODUCTION

Background to the Study

Cash flow of a company is a crucial factor that enhances its operations. According to Efobi (2008), Due to the relevance of cash flows in the company’s operations and performance, corporate organizations need to develop a suitable cash flow mix and apply it in order to maximize shareholders values. Uremadu (2004) sees cash flows of an organization as those pool of funds that the company commits to its fixed assets, inventories, account receivables and marketable securities” that lead to corporate profit. The ability of the company to effectively choose adequate source of funds to finance its operations will differentiate strong cash flow governance and poorly managed cash flows (Efobi, 2008). For the cash flows to be well structured and effectively utilized, a business firm must be able to devise various ways for selecting the best components of its cash flows which would be used in the company’s operation to raise its productivity or achieve performance. This process should be based on the criteria well drawn up by the finance manager after making a careful financial planning and control for the company (Uremadu, 2004).

Cash flow is an index of the money that is actually received by or paid out by a firm for certain time period (Albrecht, 2003). This index is not inclusive of non-cash accounting charges such as depreciation. Cash represents the firm’s vascular system, if it dwindles, the business will not survive. The fact that a firm is profitable does not mean that it is also solvent. The profit is not cash. The solvency, flexibility and the financial performance of the firm are set on the firm’s ability to generate positive cash flows from the operating, investing and financing activities (Turcas, 2011). Cash flows represent all inputs and outputs liquidities and cash equivalents. Liquidities represent cash on hand and demand deposits. Cash equivalents are short-term investments with a liquidity degree that can be easily converted into cash with an insignificant risk of value change.

According to Adelegan (2003), cash flows are more direct measure of liquidity and a contributing factor in corporate performance. Cash flow information assists its financial statement users in obtaining the relevant information concerning the use of resources of virtually the entire financial resources over a given time period (Ross, 2007). Financial statements translate the financial activity of the enterprise into a more or less objective set of numbers, which provide valuable information about the firm’s performance and about its possible problems and its potential in the future (Turcas, 2011). The importance of cash flows cannot be overemphasized mainly because the users of accounting information are particularly interested in the cash of the company that is published) in its financial statements (Narkabtee, 2000). According to Bodie (2004), internally, managers need to know the current financial position of the firm (performance and problem), continuing with problems and control functions. According to Fabozzi and Markomits (2006), suppliers are interested in the firm’s liquidity because their rights are generally on a short term and in this case the company’s ability to pay is best reflected by the liquidity indicators. According to Bragg (2002), investors in bounds, who ordinarily lend the firm on medium or long term for remuneration, are rather interested in the company’s ability to generate cash flow for medium and long-term coverage of debt service.

 

THE IMPACT OF CASH-FLOW STATEMENT ON CORPORATE ORGANIZATION

 

1.2   Statement of Problem

According to Pitman (2010), cash flow does not always coincides with cash outflows. Thus, in some periods, cash will flow in than out and at other times, cashflows out than in. if receipts and payments period could be matched perfectly and forecast with certainty than a firm need no cash balance.

Pitman (2010) went further I say that shortage of cash curtail the operations of the firm which usually manifest inability of the organization to pay bills when due and the dissipation of assets. Persistence of cash shortage can lead to financial insolvency which may subsequently lead to litigation of the organization. If there is too much cash, it is not invested, then the firm is paying directly or indirectly for money that is not using. The organization losses to earnings, interests and run the risks of keeping the liquid fund (cash). The problem that faces management is how to maintain and control optimum cash balances despite the difficulties in cashflows.

Pitman (2010) also stated that the importance of cash as an asset of a firm cannot be over emphasized with out cash, that is, where is short is supply, the normal flows of operation of the corporation flows are directly productive, it is sterile. It neither produces goods for sale or induces customers to buy as if the case of other assets, fixed assets, inventories and account receivable.

In current practice, including the ambiguity of terms such as funds, lack of comparability arising from diversity in the focus of the statement (cash, cash and short term investment, quick assets, or working capital) and resulting differences in definition of funds flows from operating activities

 

THE IMPACT OF CASH-FLOW STATEMENT ON CORPORATE ORGANIZATION

TO GET THE FULL PROJECT TOPIC AND MATERIAL DELIVERED TO YOUR INBOX OR DOWNLOAD INSTANTLY, PAY N5000 Via: BANK
BANKACCOUNT NAME
ACCOUNT NUMBER
DIAMOND BANK
FREEMANBIZ COMMUNICATION
007 031 2905
FIDELITY BANK
FREEMANBIZ COMMUNICATION
560 028 4107
GTBFREEMANBIZ COMMUNICATION013 772 5121
ZENITH BANK
FREEMANBIZ COMMUNICATION
101 326 3297
OR Pay Online with ATM
After Payment, you can use the chat app at the right hand side of your browser to download the material immediately or Text Name, Title of project paid for, your email address to 08060755653.FOR PAYPAL USERS OR INTERNATIONAL

The Impact of Audited Financial Statements on an Organizational Performance 

 

Abstract

The project examines the impact of audited financial statements on an organizational performance using Nigeria bottling company as a case study. The main objective of this study is to examine whether the implementation of financial statement has helped in the growth and development of the organization. The primary source of data collection was used in gathering data from respondents. A structure questionnaire was designed by the researcher and validity by two experts from the statistics department was used to obtain data Chi-Square (X2) was used to test hypotheses formulated. It was discovered that audit report is very important to the organization, especially Nigeria bottling company plc, which was the areas of the main focus, it enhance the growth of the organization and has indeed brought in positive impact. It was concluded that it is the primary duty or responsibility of management and the board of directors of the company to prepare the financial statement and it is the duty of the auditor to examine the financial statement prepared by the management. It was recommended among others that audited financial statement should be prepared in a manner that will show the responsibilities of both the auditor and management

 

CHAPTER ONE

INTRODUCTION

Background to the Study

The demand for auditing arises from the potential conflict of interest that exists between owners (stakeholders) and managers. The contractual arrangement between those parties normally requires that management issues a set of financial statements that purports to show the financial position and results of operation of the entity. In order to properly evaluate the financial statements, the parties to the contract must agree on a benchmark or criterion to measure performance without an agreed-upon criterion, it is impossible to measure the fair presentation of the financial statements.

Generally Accepted Accounting Principles (GAAP) have, over times become the primary criteria used to prepare financial statements. As the term implies, these principles are generally accepted by the diverse users of financial statements.   

Nigeria took a step to redefine the scope and maintenance of state enterprise in 1953 as a result of the controversy surrounding public sector ownership and the virtues of private cooperation in Nigeria.
Nigeria bottling company limited is one of the few multinational organizations that had it’s beginning in Nigeria from a small family owned operations at inception.

The Nigeria bottling company limited (NBC) was in cooperated in November 1951 as a subsidiary of the A.G levities group with the franchise to bottle and sell coca-cola product in Nigeria. Production began in 1953 at bottling facilities in Ebuta-Melta, Lagos.

The role played by audit in an organization performance in developing countries is progressively becoming important as it gives room know what is owned and what is spend in the discharge of duty by the NBC. It is important for the private sector organization in the country to appoint an independent auditor for who will present a report stating whether the financial statement and the book of account shows a true an fair view off the financial position of the organization.

The Impact of Audited Financial Statements on an Organizational Performance 

 

Statement of Problem

Over the years there has been a controversy over the impact which audited financial statement has on organization performance. In view of this, the research wishes to investigate wheat impact audited financial statement actually have in an organization performance.

As a result of this uncertainty of the auditing financial statement has also been under-rate. The study is also set out to remove the uncertainty and make clear the important of auditing financial statement in an organization performance.

The Impact of Audited Financial Statements on an Organizational Performance 

</

THE EFFECT OF ENTREPRENEURSHIP ON THE GROWTH AND DEVELOPMENT OF THE NIGERIAN ECONOMY

 

Abstract

The research study was designed to find out the problems that have been affecting the effect of entrepreneurship on the growth and development of the Nigeria economy. Entrepreneurship had had a stunted growth because of difficulties encountered by entrepreneur getting loan from financial institution. In view of the purpose of study, the simple descriptive survey design was adopted and a total number of 50 respondents from some selected small scale business in Nigeria were randomly selected to get their responses based on the purpose of this study. Findings of the study revealed that entrepreneurship help to provide speed and accuracy to employment and help to fight crime among youth and also create more job opportunities in the economy. It was recommended that government and top management of public institutions should pay more attention to the need and promotion of entrepreneurship in the society and also the study of entrepreneurship should be largely introduced into higher institutions to enable young school leaver to be confident in themselves to avoid crime in the country.

 

CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

Throughout the theoretical history of entrepreneurship schools, from multiple disciplines, in the social sciences have grappled with a diverse set of interpretations and definitions to conceptualize this abstract idea. Over time, some writers have identified entrepreneurship with the function of uncertainty bearing others with the coordination of productive resources, others with the introduction of Innovation, others still with the provision of capital.
British economists such as Adam Smith, David Ricardo and John Stewart will briefly touch on the concept of entrepreneurship through the referred to it under the broad English term of “Business Management.”

The word entrepreneur is derived from the French capitalist defined it as a risk taking Innovative Individual who established and manages a business of the purpose of profit and growth.

The contribution of small and medium scale business to the economy include employment and income generation, thereby enhancing Gross Domestic product in Nigeria, this will also clear the fact that not every new small business is entrepreneurial or represent entrepreneurship.

 

THE EFFECT OF ENTREPRENEURSHIP ON THE GROWTH AND DEVELOPMENT OF THE NIGERIAN ECONOMY

 

1.2   Statement of Problem

The effect and need to find adequate solution as the growth of the economy in Nigeria is a matter that should be put aside by a mere wave of hands this is one to the fact, the entrepreneurship has been discovered to be the effect to the growth of the economy in Nigeria.

THE EFFECT OF ENTREPRENEURSHIP ON THE GROWTH AND DEVELOPMENT OF THE NIGERIAN ECONOMY

THE EFFECTS OF SALES PROMOTION ON CONSUMER BUYING DECISION

 

 

ABSTRACT

This research was under taken to elicit the effect of sales promotion on consumer buying decision using Coca-Cola Bottling Company as a case study. The main objective of this study is to know how sales promotion have helped in consumer buying decision and to also know it have succeeded in increasing the buying and drinking habit of Coca-Cola products. In this case the survey method was used in collecting data and this method permitted to survey the respondents at their own convenience, with questionnaire administered to them, it was found out the competition, free sample, sweep takes or demonstration were the effective tools in mobilizing and securing consumer active participation and interest in sales promotion on brand product and services conclusion one can say the form all our findings, competitive sales promotion do not move brand loyal to change their brand, sales promotional competition most especially sales promotion and sweep takes are goods marketing tool if the objective is to yield faster and measurable responses in sale of brand, product or service it was therefore recommended that as companies move from transaction oriented view of their customer to a  relationship building one companies have to develop strategies which will be aimed at keeping their customers to remain loyal probably through creating and sponsoring quality programmed games and so forth.

 

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND TO THE STUDY

          Sales promotion is one to the promotional mix variable which forms the basic of all marketing and promotional activities.

          The rapid growth of sales promotion is due to the fact that product managers are faced with greater pressure to increase their current sales and sales promotion as viewer as an effective short-term sales tools. Again product manager faces more competition and competing brands are les differentiated increase, managers use sales promotion to differentiate their offer, more ever, sales promotion help to complement advertising efficiency which has been on decide as result of using cost media clutter and legal resents. It is used in combination with other promotional tools.

In other words, it is viewed as paling a secondary role to the major tools of advertising and personal selling.

 

THE EFFECTS OF SALES PROMOTION ON CONSUMER BUYING DECISION

 

1.2    STATEMENT OF PROBLEM

          The main concern of this study is to review the effect of a company sales promotions method on the sales of product in the market. Basically the main issue is to know the extent to which promotion efforts has led to increase in sales volume and profitability.

 

THE EFFECTS OF SALES PROMOTION ON CONSUMER BUYING DECISION

</div