Cash Flow and Information System Implementation for Spencer Holidays - Assignment Example

Download file to see previous pages The sale of Cruises by Spenser Holidays is experiencing negative growth, this is a seasonal fluctuation and the company will be regaining this product sale in the second half of the year. The healthy status of the cash flow situation can be partly attributed to the newly implemented debtor management program where the credit periods are strictly maintained within its 14 days term. When looking at the main figures of Opening and Closing Balances in all months, no negative cash flow situations are anticipated. For all months under review, positive net cash flow and a positive increase in the closing balance for each month can be noted. The increase in liquid cash from $10,000 to $202,565 at the end of the period indicates a high liquidity rate, which is 20 times more than what the initial status at the beginning of the period. This additional cash should be invested in interest-earning deposits or considered for expansion capital. Net Cash flow for each of the months is rather regular if the bi-monthly payments of rent are apportioned out monthly. Overall the company’s performance reflected through the healthy and positively incrementing cash flow status is highly satisfactory. Table 1 provides the 6-month cash flow statement and figure 1 & 2 provides graphs of sales performance and Net cash flow details.
With the rapid developments in the field of Information Technology, companies are making use of different information systems. Information systems as any other systems comprise of input, process and output functions. A computer-based management information system will comprise of main components like hardware, software, database, network, procedures and people (Turban, McLean & Wetherbe 2001). Operation support systems can include Transaction processing systems, Process control systems, Customer Relationship Management systems or Enterprise Collaboration systems. ...Download file to see next pagesRead More