StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Financial Management - Case Study Example

Cite this document
Summary
The surplus for the first four months is higher at slightly more than $ 5 million. This is attributed to the high rate at which revenue is collected through the tools of revenue collection. The next eight months experienced a drastic reduction in revenue collection…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.3% of users find it useful
Financial Management
Read Text Preview

Extract of sample "Financial Management"

FINANCIAL MANAGEMENT For the operating monthly budget, see the attached excel spreadsheet. 2. The surplus for the first four months is higher at slightly more than $ 5 million. This is attributed to the high rate at which revenue is collected through the tools of revenue collection. The next eight months experienced a drastic reduction in revenue collection accompanied by escalating expenses. This results into the lower surpluses of slightly above $ 1.5 million. As compared to the first four months, the variation is quite wide.3. The increase in number of vehicles failing inspection is quite positive for the budget as it would lead to increased figures of the budget surplus, given that the revenues collections from inspections would go up by 15% more as compared to the paltry 15% initially.

With revenue collections going up, the personnel may be overwhelmed; therefore, there will be the need for DMV to be tougher in their standards to minimize pilferage of the revenue which would ultimately translate into huge profits at the end of the financial year. This policy is quite good for the company since it increases the value, which would translate well to the shareholders in terms of profits and the dividends issued. On the contrary, this policy may leave the employees dissatisfied if it is not accompanied with the due welfare package.

This is because the policy will be more tougher on the employees as opposed to the procedure they are used to; hence, they would take quite some time to adjust.4. Suppose DMV has a choice of when to implement the new supposedly efficient and effective system, it would result in several impacts depending on the scenario. If they are implemented at the beginning of the year, the finances of the company would drastically rise since the new system through its capture measures will be in the position of ensuring that there is no license that goes non-captured and that all the collections are made and reported.

The costs resulting from such operations will be reported and then worked on appropriately, i.e. not excessively. On the other hand, if the new licenses are not implemented at all, we will only remain with the old systems as the only option. The costs incurred would still be inflated cutting into the profits of the company, hence lowering the surplus. The assumption that the number of licenses issued any month is constant is grossly unrealistic because the results of efficiency will ultimately lead to a rise in the number of the issues.5. The changes that I may suggest for DMV regarding their operating budgets will concern commitment, allocations and time-to-time adjustments of the budgets.

A commitment as an institutional funding is done for the sake of either counteroffers or new equipment, and they lead to a permanent change to the budget. Allocations take place because of the policies set by the management to fast track the company’s operations; they must be obeyed to the letter. The budget depending on the prevailing economic situation should be adjusted frequently. ReferencesThe 2 case studies attached by the customer.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financial Management Case Study Example | Topics and Well Written Essays - 500 words”, n.d.)
Financial Management Case Study Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/finance-accounting/1608002-financial-management
(Financial Management Case Study Example | Topics and Well Written Essays - 500 Words)
Financial Management Case Study Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/finance-accounting/1608002-financial-management.
“Financial Management Case Study Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/finance-accounting/1608002-financial-management.
  • Cited: 0 times

CHECK THESE SAMPLES OF Financial Management

Financial Management

In the paper “Financial Management” the author analyzes a concept which deals with the professional and successful handling of economic resources, such as capital, funds to accomplish the most proficient result.... Besides measuring the cash efficiency and free cash flow with the help of cash flow statement, the financial analyst also calculates various ratios on cash figures rather than the earnings of the company....
8 Pages (2000 words) Case Study

Financial Management

Financial Management plans for the future cash outflow.... The key objective of finance management is to create wealth to the business organisation, generate cash flow and to provide an adequate investment for the free flow of the… The main objective of the Financial Management is to provide funds for the business.... From the point of view of the organisation Financial Management is the processes associated with the mobilization of funds from the various sources when needed at an acceptable cost which is called Financing Decision through banks and other financial institutions, and control the fund flow by monitoring their use to ensure the procurement and deployment of funds according to the plan....
12 Pages (3000 words) Essay

Financial Management

The company has been a noteworthy performer in the Financial Management The NYSE Euronext The New York Stock Exchange Euronext (NYSE Euronext) is Euro-American Company that was formedas a result of a merger of the NYSE/New York, Euronext/Paris and NYSE Arca.... Fundamentals of Financial Management.... As compared to the rest, Euronext is an extremely new financial entity, which was formed in 2000 (Brigham, 2009).... The Act brought reform into American business and enhanced criminal penalties for any company that destroys, falsifies, fabricates or alters financial records (Heckman, 2009)....
2 Pages (500 words) Essay

Financial management

In shortly the main purpose of capital budgets is to plan for long terms projects. When an Financial Management Instruction Capital budgeting is the process of identifying, analyzing and selecting investment projects whose returns are expected to extend beyond one year.... ?Financial Management.... ?Financial Management.... Financial Management Association.... hellip; It helps the management to know about the plans that are favorable for the organization....
1 Pages (250 words) Essay

Financial management

Financial Management: method and meaning.... Financial Management.... This project answers to both the queries in positivity.... The NPV of this project is $1,075,689.... 6 which is substantial relative to the project.... Moreover, the project would be accepted on the basis of payback… The company has a policy of not accepting projects with a payback period of over 3 years and this project will recover its initial investment in less than 3 years....
2 Pages (500 words) Essay

Management of Mark and Spencer Group

The Spencer business has since reduced over the years which are evident from the reduction trend of the operating cash flows (“Foundations of Finance The Logic and Practice of Financial Management, Student Value Edition + Myfinancelab Package”.... The organization is the holding firm of Mark and Spencer Group of companies....
6 Pages (1500 words) Essay

Financial Management

If the correlation coefficient was 0 or -0.... then the investors risk is reduced by investing in the two stocks.... This is because risk reduction occurs when the correlation coefficient is as close as possible to negative one. c.... A portfolio is a combination of different… Therefore, a portfolio is better than investing in only one stock in the sense that it entails diversification in various stocks that are offered in the stock market and also to minimize the chances of risk. a....
4 Pages (1000 words) Assignment

Financial Management

This assignment "Financial Management" identifies and explains the objectives and general principles of Panel of Takeovers and Merger, identifies and examines the economic reasons for acquisitions and mergers and discusses why the expected economic benefits may not be reached.... ot all acquisitions and mergers are successful as statistically speaking 40% to 80% of all acquisitions and mergers do not reach their intended conclusion and one of the reasons for this failure is that the upper management is stretched too thin and may be unable to handle the acquisition or merger process properly or neglect their core business responsibilities or the fear of the unknown has driven many companies' management to make hasty decision say for example changing economic landscape, the introduction of new technology, globalization or conflict of diverging corporate cultures....
9 Pages (2250 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us