Assignment 2: Required Assignment 1—Genesis Energy Cash Position Analysis

The Genesis Energy operations management team is now preparing to implement the operating expansion plan. Previously, the firm’s cash position did not pose a challenge. However, the planned foreign expansion requires Genesis Energy to have a reliable source of funds for both short-term and long-term needs.

One of Genesis Energy’s potential lenders tells the team that in order to be considered as a viable customer, Genesis Energy must prepare and submit a monthly cash budget for the current year and a quarterly budget for the subsequent year. The lender will review the cash budget and determine whether or not Genesis Energy can meet the loan repayment terms. Genesis Energy’s ability to repay the loan depends not only on sales and expenses but also on how quickly the company can collect payment from customers and how well it manages its supplier terms and other operating expenses. The Genesis Energy team members agreed that being fully prepared with factual data would allow them to maximize their position as well as negotiate favorable financing terms.

The Genesis Energy management team held a brainstorming session to chart a plan of action, which is detailed here.

• Evaluate historical data and prepare assumptions that will drive the planning process.
• Produce a detailed cash budget that summarizes cash inflow, outflow, and financing needs.
• Identify and compare interest rates, both short-term and long-term, using debt and equity.
• Analyze the financing mix (short/long) and the cost associated with the recommendation.

Since this expansion is critical to Genesis Energy expanding into new overseas markets, the operations management team has been asked to prepare an executive summary with supporting details for Genesis Energy’s senior executives.

Working over a weekend, the management team developed realistic assumptions to construct a working capital budget.

1. Sales: The marketing expert and the newly created customer service personnel developed sales projections based on historical data and forecast research
2. Other cash receipt: Rental income $15,000 per month
3. Production material: The production manager forecasted material cost based on cost quotes from reliable vendors, the average of which is 50 percent of sales
4. Other production cost: Based on historical cost data, this cost on an average is 30 percent of the material cost and occurs in the month after material purchase
5. Selling and marketing expense: Five percent of sales
6. General and administrative expense: Twenty percent of sales
7. Interest payments: $75,000—Payable in December
8. Tax payments: $15,000—Quarterly due on 15th of April, July, October, and January
9. Minimum cash balance desired: $25,000 per month
10. Cash balance start of month (December): $15,000
11. Available short-term annual interest rate is 8 percent, long-term debt rate is 9 percent, and long-term equity is 10 percent. All funds would be available the first month when the firm encounters a deficit
12. Dividend payment: None

Based on this information, do the following:

1. Using the Cash Budget spreadsheet, calculate detailed company cash budgets for the forthcoming and subsequent years. Summarize the sources and uses of cash, and identify the external financing needs for both the forthcoming and subsequent years.

   Download this Excel spreadsheet to view the company’s cash budget. You will calculate the company’s monthly cash budget for the forthcoming year and quarterly budget for the subsequent year using this information.

1. In an executive-level report, summarize the company’s financing needs for the forecast period and provide your recommendations for financing the planned activities. Be sure to comment on the following:
   1. Your recommended financing solution and cost to the firm: If Genesis Energy needs operating cash, how should it fund this need? Are there internal policy changes with regard to collections or payables management you would recommend? What types of external financing are available?
   2. Your concerns associated with the firm’s cash budget. Is this a sign of weak sales performance or poor cost control? Why or why not?

Write a 7-page paper in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M3_A2.doc.

By Wednesday, March 11, 2015, deliver your assignment to the M3: Assignment 2 Dropbox.

Case Study    ***** Rule this must not be copied. It must be original work. I will pay a bonus for great work.

The budgeting process and budgets themselves have significant impacts on management actions and performance, in both positive and negative ways. It is common at many local, state, or national governmental agencies, and nonprofit organizations, and even in some for-profit enterprises for managers to increase spending at the end of the budget cycle. This process, usually referred to as “use it or lose it” can be harmful to objectives of any organization. Managers do this, as they often feel that if they don’t spend the amount that was budgeted this year, next year their supervisors will reduce their budget by the amount not spent in the current year. So, to avoid having their budget dollars reduced, managers often increase spending at the end of the year to ensure all budgeted amounts are spent even if items are not necessarily needed. This is more common in government and nonprofit organizations, but can be found in for-profit enterprises as well.

Requirement: Write a memo to the budget managers in an organization, assuming you are the CEO. Your memo should direct budget managers not to utilize this approach, but also offer a logical rationale, and perhaps an alternative solution.

“Corporate Responsibility” Please respond to the following:

• From the case study and the e-Activity, determine two (2) key reasons why people value the customer service that Nordstrom provides. Examine Nordstrom’s current corporate social responsibility activities, and suggest one (1) additional action that the company could take to further strengthen its corporate social responsibility efforts.
• From the scenario, suggest two (2) reasons why you believe it is important for Walters Aeroworks to take its corporate community into consideration when addressing social responsibility. Assess the value of a reputable corporate image when considering expanding the company’s current operations. Provide a rationale for your response.

• Journal Entry 1: Prepare a one to two (1-2) paragraph journal entry that examines your learning experiences with ORION in Week 1 of this course, that addresses the following:

1. 1. Determine the primary manner in which ORION has increased your business knowledge in the related subject area.
   2. Discuss specific challenges that you may have experienced with any of the subject matter presented, and point out the areas for which you would like more information.
   3. Suggest at least two (2) possible applications of this week’s material to the company that you currently work for or hope to work for in the future.

“Dealing with the Global Workforce” Please respond to the following:

• From the scenario, assess the importance of developing and adhering to a strategic plan when a company attempts to expand beyond its domestic business operations. Suggest two (2) best practices that a company should follow when attempting to complete such an expansion. Justify your response.
• From the “Business Etiquette: Dealing with the Global Workforce” reading in Chapter 3 of the text, determine two (2) reasons why using the identified tips are important when you are using virtual team members for your organization. Provide at least two (2) examples of where these recommendations would be effective for a company that operates internationally.

• Journal Entry 2: Prepare a one to two (1-2) paragraph journal entry that examines your learning experiences with ORION in Week 2 of this course, that addresses the following:

1. 1. Determine the primary manner in which ORION has increased your business knowledge in the related subject area.
   2. Discuss specific challenges that you may have experienced with any of the subject matter presented, and point out the areas for which you would like more information.
   3. Suggest at least two (2) possible applications of this week’s material to the company that you currently work for or hope to work for in the future

“Successful Entrepreneurship” Please respond to the following:

• From the scenario, evaluate the importance of a business plan that is both well-written and based on desired outcomes. Suggest two (2) ways in which a well-written business plan could assist a business owner like Cliff Walters in continuing with his vision for Walters Aeroworks.
• From the case study, evaluate the effectiveness of Lee Rhodes’ business decisions based on the manner in which such decisions have impacted the success of her business from an entrepreneurial point of view. Recommend two (2) additional strategies that Rhodes could utilize to increase her chances of continued success. Justify your response.

Journal Entry 3: Prepare a one to two (1-2) paragraph journal entry that examines your learning experiences with ORION in Week 3 of this course, that addresses the following:

1. 1. Determine the primary manner in which ORION has increased your business knowledge in the related subject area.
   2. Discuss specific challenges that you may have experienced with any of the subject matter presented, and point out the areas for which you would like more information.
   3. Suggest at least two (2) possible applications of this week’s material to the company that you currently work for or hope to work for in the future.

Application: Technology in Human Services Organizations

As you discovered in the Discussion, technologies can provide numerous benefits to human services organizations. To determine whether or not new technologies are a good fit for an organization, you must be aware of their strengths and limitations. You can research new technologies using reviews, articles, and other testimonials from other companies to determine whether a new technology’s benefits will outweigh its limitations.

For this Application, you consider new technologies that would enhance the services provided by a human services organization. As you do so, think about the benefits and limitations of such technologies on the organization and its clients.

The assignment: (3–4 pages)

• Briefly describe a human services organization you believe would benefit from enhanced technology and explain why.
  
• Briefly describe three specific technologies that might attract and/or better serve potential and existing clients and explain how and why. Be specific.
  
• Explain at least one benefit and one limitation each technology might present for the organization and its clients.

Support your Application Assignment with specific references to all resources used in its preparation. You are asked to provide a reference list for all resources.

This is a sample quiz and need help trying to use it as a source for a study guide for the upcoming quiz please show your work