Corporation with Lots of Cash - Essay Example

Free

Extract of sample
Corporation with Lots of Cash

The doubt about the economic recovery is even more compounded with the recent development of Standard and Poors’ credit downgrade of United States from triple A credit rating to just double A. With how things are going, it is still not likely that the non-financial sector will be freeing that cash for reinvestment. To better understand why these companies are conservative with their spending, we have to consider the lessons they learned from the past financial crisis. Beginning with the dot com bust in 2000, companies with more cash were able to weather the crisis better than cash strapped companies hence is this conservative attitude. The same conservative attitude also helped them withstood the crisis when the recession broke in late 2007 and the eruption of financial crisis in 2008. Companies that were more liquid were able to get through the storm as they do not have to resort to lending which were not available then. ...Show more

Summary

Corporations with Lots of Cash It is quite unusual for an economy such as the United States who is still struggling to recover from an economic slump yet it has as much as $ 2 trillion in cash sitting in the private sector. If we are going to use Obama’s Stimulus Package as a benchmark which has saved and created over a million jobs with a mere $787 million, that $2 trillion dollars could have created over 3 million jobs…
Author : lillalarkin
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Corporation with Lots of Cash"
with a personal 20% discount.
Grab the best paper

Related Essays

Cash and accrual accounting
These include cash and accrual method and the company can use any method depending on the benefit they receive from using either of the techniques. Thus, the cash basis accounting seems attractive because of its simplicity in that the accounting records are maintained on the cash flow of the business.
5 pages (1250 words) Essay
Internal Cash Control
This is because the checks issued are not pre-numbered as a result, there is no preferable order on how the treasurer or the purchasing agent issues the checks thus, no one can be held responsible for any check loss. In addition, the checks are not safe because they are kept in an unlocked file cabinet (Kimmel, Weygandt & Kieso, 2011).
3 pages (750 words) Essay
CASH FLOW
The Home Depot There is an increase in the amount of cash and cash equivalents in 2011 of $1,474M compared to 2010. The increase has come entirely from operating activities (6,651M) while investing and financing activities have contributed to decreases in cash and cash equivalents.
3 pages (750 words) Assignment
S Corporation vs. Corporation
There are various filings that one has to do to become incorporated. In the United States of America the law recognizes two types of corporations for the purposes of taxation. There are the C corporations and the S corporations (also known as small corporations).
3 pages (750 words) Essay
Statements of cash flows
Here, borrowing is considered a financing activity and since overdrafts are borrowings for a short time, they are thus added to cash flow statement. Moreover, they are included in cash flow statement because their payment is based on demand from cash management and thus composes what is called cash and cash equivalent.
7 pages (1750 words) Research Paper
Cash and Working Capital
The working capital cycle consist of four phases this are; (1) finding the best sources of cash, (3) turning the money into short resources such as inventories and labor and also using it to pay bills, (4) using the available resources gotten with the money to provide services, (5) invoicing the customers for the services rendered.
6 pages (1500 words) Essay
Cash Flow
Panera Bread Company and its subsidiaries are popularly referred to as “Panera” or “Panera Bread”. The company is a national bakery cafe that owns over 1450 companies and also operates with franchises in bakery. The company has dominant presence in Columbia and Ontario, Canada where it operates in 40 states.
3 pages (750 words) Case Study
You are an entrepreneur
The young people would be the main target market for the brand. The company would make the pricing moderate so that it is affordable for the college and the school goers. The business would need four tiers of staff. The lowermost
6 pages (1500 words) Essay
Group Project Final Report
The risk is also prevented because bonds have a fixed rate of return. The selection of assets can be based on the returns and risks. They can also be based on the wants of the investor. The monitoring of the investment can be periodical. The investor should set
1 pages (250 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT