Management of the Cash Position Essay Example for Free

Management of the Cash Position Essay Not only do these managers often have difficulty in comprehending sophisticated forecasting techniques, but the cash flows of their companies are usually dependent upon fewer customers and a smaller number of product lines than those of their larger competitors. Thus the cash flow pattern of the small firm is typically too unstable over time and the available data describing it too limited for reliable forecasting. The small business is subject to still other constraints, apart from those applicable to all firms, which tend to restrict the use of even relatively simple cash management techniques. Small firms, for example, are normally unable to afford the division of talent available to larger companies in the form of highly educated financial managers. Many small firms, struggling hard just to remain solvent and earn a fair return, suffer further from lack of recognition that a cash management problem even exists. Once a problem is discovered the manager may lack knowledge of the methods available for a viable solution. A solution which requires more manpower or expenditures than can be covered out of normal cash flow is Dr. Grablowsky is assistant professor and rhairman of the Department of Finance at Oid Dominion University. He has published articles in the JSBM, the Journal of Financial Education, and the Journal of Behavioral Economics. Prior to his entry into education. Dr. Grablowsky was with the Department of Cost, Planning, Systems, and Analysis at the Monsanto Co., World Head, quarters, St. Louis.  typically rejected by the small business. This article will present the results of a survey of small-business cashmanagement practices and compare these methods with techniques commonly employed by larger corporations. Small businesses are defined in this study as firms with annual sales under $5 million. Data for this study were collected by means of a mail questionnaire distributed to two hundred firms selected randomly, within the various business classifications, from classified advertisements appearing in the telephone directories of the Greater Norfolk-Portsmouth SMSA and the  Hampton-Newport News SMSA. The firms were selected in five different distribution levels, with annual sales varying from under $50,000 up to $5 million. The firms in the survey operated at from one to thirteen locations and employed up to three hundred persons, although more than half had fewer than ten employees. Of the two hundred businesses selected for study, 66, or 30 percent, responded. A breakdown of the respondent firms by industry and size is given in Table 1. The Cash Budget It was hypothesized that few of the firms with sales under a million dollars would prepare cash budgets; in fact, only 30 percent of all firms in the sample did so. Several interesting relationships were noted in this regard. One was that the newer firms 1 For an example of this situation see B. J. Grablowsky, Management of Accounts Receivable by Small Businesses, Journal of Small Business Management, Vol. 14, No. 4, October, 1976, pp. 26-27. 5 According to E. Donaldson, J. Pfahl, and P. MuUins, Corporate Finance (New York: The Ronald Press Co., 1975), pp. 22-23, this would include, based on average sales per company, over 86 percent of all firms in the U,S. budgets, the larger ones updated their budgets more frequently than the others. One of the reasons for the more frequent update was that none of the largest firms made more than a thirtyday cash forecast while the smaller ones normally made budgets for up to a year. This last finding is in agreement with the results of other studies showing that few firms with  sales under $3 million make sales forecasts, whereas virtually all firms with sales over $10 million prepare one or more projections for various planning periods. As the firm grows, cash budgeting becomes more essential. Of the firms that prepared cash budgets, an annual planning period was the most common, although some also used weekly, monthly and quarterly budgets. No company made a cash budget for more than one year. The frequency of updating the budgets was well distributed over weekly, semimonthly, monthly, quarterly, and annual intervals. Another question asked whether or not the firms cash balances were being handled in the most effective and efficient manner. Of the 67 firms sampled, forty-eight replied that they felt they were efficiently utilizing their cash balances, but, of these, only eleven regularly prepared cash budgets. The assumption by the 37 firms that did not prepare cash budgets that they were efficient in the use of their cash balances is certainly made in ignorance. Conversely, of the remaining 56 firms that did not preoare cash budgets twenty-three replied, and probably rightly so, that they were not using their cash balances in the most 3 See Orgler. Cash Management, pp. 4-13, for a discusFion of factors affecting the time horizon for cash budgets. Aso see: Keith Smith. Management of Working Capital (St. Paul, Minn.: West Publishing Co., 1974), pp. 35-49, for a survey of the practices of large businesses. Soldofsky and Olive, Financial Management, p. 559. were more likely to prepare budgets than t heir longer-established competitors. A possible explanation lies in the higher educational attainments of the owner-managers of the newer firms. This characteristic, together with the attitudes of the owners toward budgeting, is believed to be a major determinant of the efficiency with which financial planning is handled in the small firm. The d^ta also showed that, somewhat contrary to expectations, in the size categories which included the largest and the smallest firms (i.e., those with less than $50,000 and those with between $1  million and $5 million in sales) a smaller percentage prepared cash budgets than in the other groups. This result was expected for the smallest firms but quite unexpected for large ones. On the other hand, of the firms that prepared cash  effective manner. This realization alone should have provided impetus to the managements concerned to investigate the need and advantages for cash budgeting—yet they still failed to prepare the budgets which could have improved their cash flow performance. The managers of these firms recognized that they had a problem—the need for more efficient cash management—yet they failed to take the proper steps to solve it. These same firms tended to take fewer of their allowed trade discounts than others, suggesting that because they did not forecast cash flows they found it necessary to resort to expensive sources of financing such as foregoing discounts. Cash Collection  actions that they could take themselves. Although only about half of the respondents had even heard of lock boxes or concentration banking, more than one-third did use one or both of these methods for reducing float time. Generally, the respondents reasoned that they could not justify expending the time and money required to reduce float, because such action would not (in their opinion) materially improve the cash position or the profits of the firm. As with many other decisions confronting small businesses, this one was usually made with inadequate information or investigation. The principal reason, again, was the lack of human resources and expertise available to the small firm. Wholesalers, because of the regional or national nature of their sales, were the most frequent users of these techniques. Businesses with a local sales orientation, such as service establishments and retail stores, were much less likely to use any method to improve cash collections.

Leonardo Da Vinci Essay -- Biography Biographies Bio

Leonardo Da Vinci (1452-1519), Florentine artist of the Renaissance (the period of Western European history stretching from the early 14th century to the mid to late 16th century), a painter, sculptor, architect, engineer, and scientist. His deep love for nature, knowledge, research and experience, was the central reason of both his artistic and scientific accomplishments. " Though I have no power to quote from authors as they do I shall rely on a bigger and more worthy thing-on experience."{The Notebooks of Leonardo Da Vinci pg.2} His originality in the field of painting influenced the course of Italian art for more than a century after his death, and his scientific studies--particularly in the fields of anatomy, optics, and hydraulics--anticipated many of the developments of modern science. His amazing powers of observation and skill as an illustrator enabled him to notice and recreate the effects he saw in nature, and added a special liveliness to his portraits. Curious as well as observant, he constantly tried to explain what he saw, and described many experiments to test his ideas. Because he wrote down and sketched so many of his observations in his Notebooks, it's known that he was among the very first to take a scientific approach towards understanding how our world works, and also reveal his sense of freedom, by disagreeing with the authorities (Bible, Aristotle, Plato) of his time. Leonardo Da Vinci is one of the greatest figures of Renaissance due to his contributions to the world artistically, scientifically and more importantly his freedom of thought, according to his Notebooks. Leonardo's close relationship with nature along with his curiosity led him to many discoveries that have become exceedingly useful to all h... ...ues of perspective. He opened the doors of human freedom for many thinkers that came after him. His sense of freedom and independence is seen throughout his work. What makes Leonardo exceptional is the notion that he acquired all his knowledge through experience. In Leonardo's period freedom of thought or speech did not exist, as it does today. All persons were forced to agree and go along with authorities, which at that time were the Bible, Plato and Aristotle. If people were critical of the authorities they would deal with deadly consequences. Leonardo did not hesitate; using his Notebooks he expressed his thoughts freely. Throughout his life he questioned and criticized the authorities. His freedom of thought and courageousness opened many doors for other scholars. Works Cited 1452, and 1519. The Notebooks of Leonardo Da Vinci Complete. Public Domain Books, 2004.

Positive Male Role Models Essay

The Key to the Success of the African American Male March 11, 2007 For the majority of African American males, the path to success is a challenging one. Young African American males in today’s society face major challenges to their growth and security. The lack of opportunity and motivation stems from preceding obstacles set before the pathways of their ancestors. Therefore, the crisis faced by present day African American males is nothing new. Having unchanged outcomes in the social aspect of present-day African American males, Black youth should take the unsuccessful paths of their predecessors as lessons learned. Nevertheless, there can not be any type of change expected without adequate opportunities as well as appropriate motivation. From an early age, it has become increasingly apparent that Black males are confronted with a series of obstacles in their attempts to attain academic, career, and personal-social success (Lee, 1992). Being that children are very impressionable, young black males need to be inspired with confidence by a positive example or influence in the beginning stages. The prior stages of adolescence are the most important to the development of successful African American males. This is where the need for positive male role models becomes affective. Most would agree that the key factor of role models is greatly needed. Within the article, Wanted: A few good men, the importance of role models to increase opportunities for African American males were emphasized. Pointed out was a specific period in which a defining moment takes place in the young black male’s life. This was noted as the second of several defining moments, â€Å"When individuals assert their independence and often engage in high-risk behavior† (Simms, 1991). This was seen in many black males, but particularly in those whose lives lacked a successful role model. In many cases, this is the key setback in the development of successful black males. The concern for the lack of successful role models is not the only factor, but the lack of realistic models for African American males is an issue also. In the article, Fighting the failure syndrome, it speaks of rescuing African American males from a future of self-destruction and an absence of positive male influence. The fact of the matter is, the majority of black youth grow up in female-headed, poor, and negative influenced environments (Simms, 1991). Now, with the lack of a father or father figure, the stereotypical negative branding, and no other inspiring influences, Black youth are left with a limited choice of models to follow. It is stated that successful celebrities are too distant to offer realistic models of reliable maturity. â€Å"The adult males whom many black boys try to emulate come from their own neighborhoods, and in tough urban areas, these â€Å"models† are all too often involved in drugs and crime† (Tifft, 1990). With that being said, there needs to be an empowering of young Black males. And coincidentally, Empowering Young Black Males, is an article that covers a variety of problems and possible solutions to the major challenges young Black males are faced with today. This article deals with African American males in schools, psychosocial development, as well as actions for intervention. The acknowledgement that young Black males are sufferers of negative attitudes and lowered expectations further enhances the need for empowerment schemes. Such initiatives must focus on helping Black male youth develop attitudes, behaviors, and values necessary to function at optimal levels at school and in the world (Lee, 1992). Black male empowerment can play a major role in sponsoring a positive-based developmental program. The articles used provide good supporting facts of why positive male role models are needed as well as how much of a factor they are in the path to success. The process of developing young African American males goes through many stages. Having to find the right man for the job, the effort in being effective in breaking the negative cycle, to the overall empowering of Black youth is a task.

The Psychology of Sports Essay - 1921 Words

The age of overwhelming strength and stamina governing sports is over, and the age of the mentally tough athlete has arrived. Athletes are no longer the superficial jocks and robots programmed to accomplish one goal, victory. Modern athletes ranging from the high school to professional levels are faced with many pressures and temptations, normally outside the realm of their sport. These pressures can inhibit an athlete’s performance substantially; therefore, the pressures need to be dealt with by psychologists. The effectiveness of sports psychology is demonstrated through the fields many theories, applications, and variety of techniques and procedures. Sports psychology can be defined as the study and application of the attitudes and†¦show more content†¦The field of Sport Psychology has been flourishing ever since. Many societies and journals have come into existence, as well as many professional and graduate programs. The essence of sports psychology has not, howev er, changed at all. The improvement of the athlete’s mental and physical health on and off the field of play remains the essence of sports psychology. Theories play a huge role in the â€Å"treatment† and â€Å"training† of athletes from all levels of competitive play. However, that does not mean that everything that happens to be stated in regard to sport psychology, is true. Many myths have arisen and continue to appear in the field of sports psychology. Bill Cole, founder and CEO of Procoach Systems, has researched, proven and dismissed thirty-two of these misconceptions. Many of these myths that arise come from assumptions about the effectiveness or reliability of sports psychology techniques. Take for example the following myth: Sports Psychology is only for athletics that are mentally weak. â€Å"The term ‘mentally weak’ implies there is an inherently defective or temporarily fragile mental quality in an athlete. 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