You Are the Accountant for a Small Manufacturing Firm

question 39

Essay

You are the accountant for a small manufacturing firm. Your company is privately held so there is no current requirement to issue financial statements using GAAP. You were hired four years ago and at that time you instituted a cash budgeting system. Presently you present a schedule of predicted cash sources and cash needs at the end of each week for the following week.
Jim Bangon the company's president has asked whether a statement of cash flows would also be useful.
Required:
Prepare a short memorandum to the president indicating whether you believe such an addition to the financial statements to be useful. Include in your memo the benefits that might be expected from a statement of cash flows and whether those are different from the benefits of a cash sources and cash needs listing.

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Definitions:

Stop-start Technique

A sexual therapy technique used to delay ejaculation by stopping sexual stimulation before climax.

Ejaculations

A term generally referring to the sudden discharge of semen from the male reproductive system, often associated with orgasm.

Automatic Response

A reflex action or instinctive action undertaken without conscious thought as a reaction to specific stimuli.

Female Sexual Interest/Arousal Disorder

In women, recurrent inability to attain or maintain the swelling-lubrication response of sexual excitement.