Understanding Cash Flows and Medical Accounts Receivable

2012 ◽  
pp. 111-128
Author(s):  
David Marcinko ◽  
Karen White
Keyword(s):  
Cash Flows ◽  
Accounts Receivable

Revenue Manipulation and Restatements by Loss Firms

2008 ◽  
Vol 27 (2) ◽  
pp. 1-29 ◽  
Author(s):  
Jeffrey L. Callen ◽  
Sean W. G. Robb ◽  
Dan Segal
Keyword(s):  
Firm Value ◽  
Cash Flows ◽  
Positive Relation ◽  
Credit Policy ◽  
Accounts Receivable ◽  
Market Participants ◽  
Ex Ante ◽  
Value Loss ◽  
History Of ◽  
Loss Firms

SUMMARY: This paper investigates the relation between the extent of a firm’s past and expected future losses or negative cash flows and the ex ante probability that it will manipulate revenues. When a firm has a string of losses or negative cash flows, traditional valuation models do not yield reliable estimates of firm value, and traditional price-earnings ratios are not meaningful. Evidence suggests that market participants tend to value loss firms on the basis of the level and growth in revenues, rather than cash flows and earnings, thereby motivating these firms to overstate revenue. In fact, empirical results indicate that there is a positive relation between the number of years that firms exhibit and/or anticipate losses or negative cash flows and investment in receivables after controlling for credit policy. We further show that the ex ante likelihood that firms manipulate revenue in violation of GAAP is positively associated with the history of past and expected future losses or negative cash flows, as well as with the investment in accounts receivable (adjusted for credit policy). Our results suggest another indicator of manipulation that may be used by auditors and regulators in identifying firms that are more likely to overstate revenues.

scholarly journals Overview of actions to strengthen financial stability of companies

2020 ◽  
Vol 159 ◽  
pp. 04016 ◽  
Author(s):  
Fariza Yerdavletova ◽  
Bayan Ermekbaeva ◽  
Gulnar Zhunissova ◽  
Zhanar Mukhametzhanova
Keyword(s):  
Cash Flow ◽  
Financial Stability ◽  
Cash Flows ◽  
Accounts Receivable ◽  
Financial Condition ◽  
Funding Sources ◽  
Return On Capital ◽  
Three Stages ◽  
Market Factors ◽  
Negative Factors

Based on a review of the recommendations of various scientists, the article presents measures to strengthen the solvency and financial stability of companies in various fields of production. These include effective receivables management, accelerated capital turnover, increased profits and cash flow. The article reveals the concept of financial stability as the main criteria of the company’s financial condition. As well the negative aspects of the financial condition of companies are discussed. All negative factors divided into three groups based on their characteristics: general economic factors, state factors, and market factors. The model of accounts receivable management, which includes three stages is presented. It is concluded that a high share of accounts receivable as part of assets can lead any company to loss of solvency. Ways to improve the structure of funding sources, aspects of increasing return on capital are considered. Several recommendations given to reduce the duration of capital turnover in order to increase the company’s solvency. As a factor of increasing profits a possible ways of minimizing costs are investigated. Ways of increasing production volumes are highlighted and described, measures to increase cash flow are analyzed. Considerable attention is paid to the irrational management of cash flows.

scholarly journals Back To Basics: Algebraic Foundations Of The Statement Of Cash Flows

2013 ◽  
Vol 7 (1) ◽  
pp. 93-98
Author(s):  
Donald T. Joyner ◽  
Jean-Marie Banatte ◽  
V. Reddy Dondeti
Keyword(s):  
Indirect Method ◽  
Business Students ◽  
Balance Sheet ◽  
Cash Flows ◽  
Black Box ◽  
Net Income ◽  
Undergraduate Level ◽  
Accounts Receivable ◽  
Accounts Payable ◽  
Statement Of Cash Flows

The indirect method for preparing the statement of cash flows, as described in many standard textbooks, involves an item-by-item approach, telling you to add to or subtract from the net income, the increases or decreases in the balance sheet items, such as accounts payable or accounts receivable. Many business students, especially at the undergraduate level, find these black-box-rules confusing. In recent years, several articles have appeared in the accounting literature, exploring the link between the algebraic foundations and the enumeration of items in the statement of cash flows. In this paper, an explanation is provided, through an analysis of the basic algebraic equation of the balance sheet, for the black-box-rules of the indirect method in a simple and concise manner.

Determinants of trade credit financing: a dynamic analysis comparing agri-food cooperatives and non-cooperatives

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
MCarmen Martínez-Victoria ◽  
Mariluz Maté-Sanchez-Val
Keyword(s):  
Trade Credit ◽  
Empirical Studies ◽  
Profit Maximization ◽  
Cash Flows ◽  
Partial Adjustment ◽  
Content Type ◽  
Accounts Receivable ◽  
Dynamic Panel Model ◽  
Credit Financing ◽  
General Method Of Moments

PurposeThe particular characteristics of agri-food cooperatives reduce their ability to access external financial resources. The purpose of this paper is to explore the factors influencing the agri-food cooperatives' trade credit operations by measuring their accounts receivable and comparing the results with agri-food investor-owned firms (IOFs).Design/methodology/approachThe authors apply a partial adjustment model (PAM) estimated using a dynamic panel model with a two-step general method of moments (GMM) estimator to a sample of 11,930 Spanish agri-food cooperatives and IOFs for the period 2011–2018.FindingsThe study concludes that cooperatives and IOFs have an accounts receivable target, which they attempt to achieve rapidly. Cooperatives tend to behave as IOFs do, but they present lower adjustment coefficients. This difference seems to be explained by the unique characteristics of cooperatives which set different economic and social goals, not just profit maximization as IOFs. The findings show differences between the financial and commercial purposes of the cooperatives and IOFs as a result of their internal management policies. Larger cooperatives with access to external financial sources, positive cash flows and operational necessities will grant trade credit.Originality/valueThis study gives interesting implications for cooperative managers and policymakers to help them to understand the strategies behind trade credit policies. Previous empirical studies on the agri-food sector are scarce and focus on IOFs without considering the role of trade credit in European cooperatives.

Accruals and the Prediction of Future Cash Flows

2001 ◽  
Vol 76 (1) ◽  
pp. 27-58 ◽  
Author(s):  
Mary E. Barth ◽  
Donald P. Cram ◽  
Karen K. Nelson
Keyword(s):  
Cash Flow ◽  
Predictive Ability ◽  
Cash Flows ◽  
Accounts Receivable ◽  
Accounts Payable ◽  
Aggregate Earnings ◽  
Industry Membership ◽  
Future Cash Flows

Building on the Dechow et al. (1998) model of the accrual process, this study investigates the role of accruals in predicting future cash flows. The model shows that each accrual component reflects different information relating to future cash flows; aggregate earnings masks this information. As predicted, disaggregating accruals into major components—change in accounts receivable, change in accounts payable, change in inventory, depreciation, amortization, and other accruals—significantly enhances predictive ability. Each accrual component, including depreciation and amortization, is significant with the predicted sign in predicting future cash flows, incremental to current cash flow. The cash flow and accrual components of current earnings have substantially more predictive ability for future cash flows than several lags of aggregate earnings. The inferences are robust to alternative specifications, including controlling for operating cash cycle and industry membership.

scholarly journals Utilizing the Time Discrepancy between Receipts and Cash Payments as a Financing Source for Companies

2018 ◽  
Vol 4 (2) ◽  
pp. 24
Author(s):  
Ammar Sh. Ahmad
Keyword(s):  
Cash Flows ◽  
Main Concern ◽  
Cash Management ◽  
Accounts Receivable ◽  
Time Variance ◽  
Optimal Exploitation ◽  
Optimum Utilization ◽  
Additional Costs ◽  
Many Sources ◽  
Future Cash Flows

The process of obtaining the necessary financing is the main concern of companies in order to ensure their survival and continuity in their work. There are many sources of financing that can be used by companies. The efficiency of the company's management is measured by the optimum utilization of the available sources. The cash flows resulting from the liquidation of temporary investments Inventory and accounts receivable and other current assets is a source of funding, especially if the management of the company followed a number of procedures that lead to raising the efficiency of cash management, including the preparation of the estimated future cash flows in the future And the acceleration of collection of receivables and the slow payment of liabilities, which causes time discrepancies between cash inflows to the company early and cash outflows from the company late, and helps the time variance of the company to exploit for its benefit as a free source of finance contributes to maximize the profitability of shareholders rather than resort to Other sources of financing that carry the company additional costs, which reduces the profitability, and in order to achieve this goal, the management of the company must balance between profitability and liquidity (cash), the best liquidity with the highest profitability and this is called the optimal exploitation of sources of funding.

scholarly journals Pengaruh Struktur Modal, Struktur Aset, Laba Bersih, Piutang Usaha, Likuiditas, Profitabilitas terhadap Arus Kas

Owner ◽  
2021 ◽  
Vol 5 (2) ◽  
pp. 368-379
Author(s):  
Tatema Hondro ◽  
Masriani Laia ◽  
Mastaniria Nduru ◽  
Bayu Wulandari
Keyword(s):  
Capital Structure ◽  
Cash Flow ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Cash Flows ◽  
Coefficient Of Determination ◽  
Net Income ◽  
Accounts Receivable ◽  
Service Companies ◽  
Flow Variables

The purpose of this study was to see and test whether the effect of capital structure, asset structure, net income, accounts receivable, liquidity, profitability variable to cash flows variable on the value of service companies listed on the IDX (Indonesia Stock Exchange) from 2017-2019. This research uses a method with a quantitative descriptive approach. The population obtained was 78 companies listed on the Indonesia Stock Exchange from 2017-2019. The sample used in this study was purposive sampling technique. The sample obtained was 12 companies. The data analysis used several analyzes, namely multiple linear analysis, the coefficient of determination test, the classical assumption test, the F test, and the t-test. This study shows that partially the variables of capital structure, asset structure, accounts receivable, liquidity, ROE has no effect on cash flow variables at service companies that listed on the Indonesia Stock Exchange, while the net income variable has an influence on cash flow variables at service companies listed in Indonesia Stock Exchange, and simultaneously the variables of capital structure, asset structure, net income, accounts receivable, liquidity, Return On Equity do not have an influence on cash flow variables in service companies that listed on the Indonesia Stock Exchange.

Slashing Accounts Receivable, Part II

2006 ◽  
Vol 37 (3) ◽  
pp. 60
Author(s):  
JOSEPH S. EASTERN
Keyword(s):  
Accounts Receivable

Standardizing Your Strategy For Accounts Receivable

2010 ◽  
Vol 41 (11) ◽  
pp. 50
Author(s):  
JOSEPH S. EASTERN
Keyword(s):  
Accounts Receivable
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