Controls for Inflows - Essay Example

Apollo Shoes, Inc. Apollo Shoes, Inc. Cash Flow Controls As I am looking over the cash flow ment, I am convinced that the onething that cannot be changed is the depreciation and amortization value. This particular value will increase yearly. Therefore, this part cannot be controlled. Trying to keep an influx of cash is hard to do, but necessary for every company to survive. Apollo Shoes shows a decrease in net cash flow from 2005 to 2006. It needs to show an increase in the years to come so that the company will not go bankrupt.

However, Apollo Shoes, Inc. shows that the company’s cash expenditures were higher than the income, making the overall cash drop by over $250,000 (Louwers & Reynolds, 2007). I am proposing is that Apollo Shoes should consider examining the way the company operates and finding a way to cut back on the expenditures through the reduction of the packaging for their products, the cutback of their payroll, and cutback of frivolous expenses that do not really need to be made.Furthermore, Apollo Shoes needs to keep a close tab upon its inventory levels and the payroll.

If these three components can be limited to a bare minimum that still enables Apollo Shoes to operate, then the company will be able to produce great profits.Sales ControlSales affect the cash and the ways it is distributed throughout the company. Implementing sales control is tricky. The difficulty lies in making sure that the advertising budget does not spend more than Apollo Shoes is likely to bring in. Controlling sales requires three overall components: firstly, advertising has to be below the net sales of the shoes forecasted to sale that year; secondly, making sure that the store selling Apollo Shoes does not negatively influence the sales; and thirdly, knowledge of retail outlets clientele will help Apollo Shoes better sell the products.

ChecklistTo control Cash Flow:Supplies: Use only what is necessary. Try to keep a minimum on hand.Payroll: Try to maximize the time of each employee on the clock. Keep away from overtime as much as possible. In a sense, finding the best people for the job is usually essential for this to happen.Inventory: Back stock will be needed to keep in the distribution centers to be ready to go out to the retail outlets when required. However, this needs to be kept at a minimum to cut back on the amount of cash.

To control Sales Flow:Supply: Keep enough products at the retail outlets so that the product will be readily available for the customer.Demand: Know what the best selling products of Apollo Shoes are and keep more of those on the shelves than the others. Pushing the most popular products will allow Apollo Shoes to maximize its profits.ReferencesLouwers, T. J., & Reynolds, J. K. (2007). Apollo Shoes, Inc. An Audit Case to Accompany AUDITING AND ASSURANCE SERVICES. Retrieved from http://www.

academia-research.com/filecache/instr/a/p/700135_apollo_shoes_inc.doc