The cash-management process includes three elements: (1) controlling the cash-collection and cash-disbursement process, (2) managing the available cash balances, and (3) investing those balances in short-term instruments. Suppose you are a Fund Manager at one of the districts in Zambia and you have just received a K1000, 000 for salaries and operations for the entire year. a. Explain 5 various options you can use to manage cash balances. State the advantages and disadvantages of each of the options you identified. b. Identify 7 instruments in which you can invest the balance. State the advantages and disadvantages of each of the instruments you have identified.
The cash-management process includes three elements: (1) controlling the cash-collection and cash-disbursement process, (2) managing the available cash balances, and (3) investing those balances in short-term instruments. Suppose you are a Fund Manager at one of the districts in Zambia and you have just received a K1000, 000 for salaries and operations for the entire year. a. Explain 5 various options you can use to manage cash balances. State the advantages and disadvantages of each of the options you identified. b. Identify 7 instruments in which you can invest the balance. State the advantages and disadvantages of each of the instruments you have identified.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 49E: Preparing a Statement of Cash Flows-Direct Method The controller of Newstrom Software Inc. provides...
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The cash-management process includes three elements: (1) controlling the cash-collection
and cash-disbursement process, (2) managing the available cash balances, and (3) investing
those balances in short-term instruments. Suppose you are a Fund Manager at one of the
districts in Zambia and you have just received a K1000, 000 for salaries and operations for
the entire year.
a. Explain 5 various options you can use to manage cash balances. State the
advantages and disadvantages of each of the options you identified.
b. Identify 7 instruments in which you can invest the balance. State the advantages and
disadvantages of each of the instruments you have identified.
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