Netting: Paradise or peril?
Article Abstract:
A Business International survey indicates that netting as a cash management technique for multinational corporations is increasing; 35 percent of the international enterprises surveyed currently use netting techniques, and 51 percent of those that do not plan to by 1987. Netting is the cash management procedure that offsets payments and receipts between subsidiaries and parent companies in order to reduce the number and dollar amount of intercompany transactions. The economic advantages of netting are discussed, as are evaluation procedures to pursue prior to implementing netting techniques, and company-designed versus bank-designed netting systems.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1986
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Mail-pattern shifts may signal need for lockbox re-evaluation
Article Abstract:
A 1986 Canadian postal survey indicates that mail delivery inside Canada may be slower than Canadian mail delivery to U.S. cities, encouraging Larry Marks, president of a cash management consulting firm, to announce that U.S. companies should not lockbox in Canada. The survey indicated that mail from Ottawa to Toronto required 4.75 days to deliver, while mail from Ottawa to New York required 4.73 days for delivery. Similar times are posted for other Canadian cities. These statistics are a reversal of the results of a postal delivery survey conducted in 1982, which showed faster delivery within Canada than to cities outside Canada.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1986
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Cash flow statements gauge corporate health
Article Abstract:
Cash flow statements of changes in financial position are on their way to becoming important finance instruments. This new procedure, the cash flow approach to financial reporting, is designed to clarify a company's financial position, in particular concerning sources and uses of funds. An example of the use of the cash flow approach when preparing financial statements is examined.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1986
User Contributions:
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