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Journal of Emerging Trends in Engineering and Applied Sciences (JETEAS)

ISSN:2141-7016

Article Title: Development of Cash Flow Software Model for Manufacturing Industry
by B. O. Akinnuli

Abstract:
Manufacturing industries in Ondo state and environs are increasing gradually, but most of the existing ones found it difficult to report their financial status as at when due. These reports when a times made available are error prone and lacks details. These were caused by human errors in computation and drudgery experienced during prolong manual computation using table calculators. This research found it dim fit to produce a lasting solution to these problems. This research investigated the Cash Flow analysis of wire and cable Manufacturing Industry in order to know the attributes required for the computation of the cash flow. Some of these attributes identified and considered in this research are majorly classified as inflow and outflow cash. The inflow consist of balance before the new year brought forward, bank loan(s), cash sales and other sources while the cash outflow involves; rent(s) insurance, licenses/permits, loan payment, legal and account fees, capital expenditure, salary, wages, repairs and maintenance, automobiles, spare-parts, transportation, advertisement, general office supplies, dues/subscription, communication, inventory and raw materials, shipping and delivery, utilities electricity / generator, and miscellaneous. These attributes are used to develop a Cash Flow Software Model that is able to solve various cash flow problems. Denki Wire and Cable Nigeria Limited, Akure, Ondo State was used as a case study for this research and Questionnaires were administered as well as data collation forms. A Computer Aided Software Model was constructed with the aid of PYTHON programming language. The major models used are: Discounted Cash Flow Model, Present Value Model, Gordons Growth Model, Product Cost and Net Cash Flow models. The results obtained from the 12 months discounted cash flow projection shows that the company will experience a positive cash flow all through the year provided it is able to meet up with the loans collected from banks and other creditors, and ensuring high sales of products in order to make its cash inflow greater than cash outflow. It was concluded that the best way to represent a cash flow analysis for Manufacturing Industries is with the use of an electronic spread sheet medium. This will give room for easy analysis and processing of all the data obtained. In order to avoid negative cash flow, Manufacturing Industries should set aside part of the profit generated, for expansion and they should borrow money only when needed. This software model will be applicable to small, medium and large scale manufacturing industries for their cash flow computation and analysis.
Keywords: development cash flow, software model, manufacturing, industry, python programming, case study
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ISSN: 2141-7016

Editor in Chief.

Prof. Gui Yun Tian
Professor of Sensor Technologies
School of Electrical, Electronic and Computer Engineering
University of Newcastle
United Kingdom

 

 

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