MVCC Cash Flow Work Key Learnings from Quarter Essay

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Wbuaalgehrybir

Business Finance

Moraine Valley Community College

Description

Part I: Decisions for Quarter One. Prior to working on your Decisions for Quarter One, review the following through the Growing Your Business simulation, the “Suggestions for Quarter 1” pop-up screen, any Quarter One Internal Emails and/or Memos, and watch the Preparing Your Financial Commitments video. The pop-up will be available at the lower left (Blue Guidelines) of the Executive Summary Decisions Tab and the video, emails, and memos can be re-accessed through the Help section. Additionally, read Turning bean counters into difference makers: How corporate finance is changing with the times, Why financial dashboards matter, and Five pointers to get you started, and What are your financial statements telling you.

The Decisions for Quarter One Assignment

  • Must be completed through the Growing Your Business simulation.
  • Consider the following questions as you prepare your annual budget/plan (if the answer is “No” to any of the questions you may be at a Competitive Disadvantage and lack critical information to draw inference from):
    • Did you
      • Request/purchase the Marketing Report and Business Intelligence Dashboard (BID)?
      • Utilize the 3 available role plays for Qtr.1?
      • Consider in the R&D Projects (other than Project 2, for which you may want to complete funding in Qtr.1)?
  • Must use the Role Play.
    • It is critical you read the details of the role play very carefully and any questions should immediately be referred to the Help Desk.
    • You can gain differentiated competitive advantage through effective use of the role play.
    • Some role players only provide qualitative information, while others provide the ability to negotiate with quantitatively.
    • The role play is a scarce resource because of the limited number of calls per quarter.
  • Must submit your Quarter One Budget Plan.
    • Periodically, as you modify inputs to use the “Model My Plan” at the lower right to see the impact of your decisions on the Financial Metrics.
    • Input your financial decision and then click on the blue Submit My SRO button on the bottom right of the Quarterly Decisions screen.
  • You must submit your Quarter One Decisions prior to moving on this week’s Quarterly Business Review assignment.

Part II: First Quarter Quarterly Business Review (QBR). You must submit your Quarter One Decisions prior to moving on this week’s Quarterly Business Review assignment. Prior to beginning work on the First Quarter Quarterly Business Review, review the following through the Growing Your Business simulation, the Variance Analysis video and the content from the Suggestions for Quarter Two Decisions pop-up. The video will provide you with a variety of financial tools, routinely used in Financial Planning & Analysis, for planning, meeting commitments and growth purposes. These are tools any business leader, regardless of function, needs to have a working knowledge.   Real world examples will be presented throughout the simulation. You can always re-watch the Variance Analysis video in the Supplementary Review Materials in the Help section. In addition, there is a TRI Corp Critical Equation in PDF format that can also be found in the same section. Additionally, read Turning Bean Counters Into Difference Makers: How Corporate Finance Is Changing With the Times, Why Financial Dashboards Matter, Five Pointers to Get You Started, and What Are Your Financial Statements Telling You.

With the completion of Q1 you are responsible for completing your first Quarterly Business Review (QBR). This is a qualitative and quantitative summary of your competitive performance for Q1. Business reviews (or Operational Reviews) are a routine part of annual corporate activities and are very cross-functional in nature. A major component of a QBR is around meeting commitments that are embedded in your budgetary planning process. Meeting commitments are seen explicitly in your Variances. These learnings are designed to enhance your performance in future Quarters.

The Quarterly Business Review Assignment

  • Must be completed through the Growing Your Business simulation.
    • After logging in, go to the Quarterly Decisions tab on the top right of the simulation site and then click on the Executive Summary tab to access the Quarterly Business Review section.
  • Must be completed and submitted using all of the data provided including
  • Quarterly Pre-Tax Net Income relative to Plan for the Quarter
  • Cash Flow walk
  • Pre-tax Net Income in Plan
  • Must show that Hisco is on track to Meet/Exceed its Annual Net Income Commitment through an evaluation of both quantitative and qualitative techniques for business analysis and decision making.
  • Must create specific business tactics to achieve organizational survival and growth.


Part I: Decisions for Quarter Two. Prior to beginning work on the Decisions for Quarter Two, carefully review the content found in the “Suggestions for Quarter 2” pop-up screen and read any Quarter Two Internal Emails and/or Memos available through your Growing Your Business simulation. The pop-up will be available at the lower left (Blue Guidelines) of the Executive Summary Decisions Tab and the video, emails, and memos can be re-accessed through the Help section.

The Decisions for Quarter Two Assignment

  • Must be completed through the Growing Your Business simulation.
  • Consider the following questions as you prepare your annual budget/plan (if the answer is “No” to any of the questions you may be at a Competitive Disadvantage and lack critical information to draw inference from):
    • Did you
      • Request/purchase the Marketing Report and Business Intelligence Dashboard (BID)?
      • Utilize the 4 available role plays for Qtr.2?
      • Consider in the R&D Projects?
  • Must use the Role Play
    • It is critical you read the details of the role play very carefully and any questions should immediately be referred to the Help Desk.
    • You can gain differentiated competitive advantage through effective use of the role play.
    • Some role players only provide qualitative information, while others provide the ability to negotiate with quantitatively.
    • The role play is a scarce resource because of the limited number of calls per quarter.
  • Must submit your Quarter Two Budget Plan.
    • Must not have a short-range outlook over the credit limit.
    • Periodically, as you modify inputs, use the “Model My Plan” at the lower right to see the impact of your decisions on the Financial Metrics.
    • Input your financial decision and then click on the blue Submit My SRO button on the bottom right of the Quarterly Decisions screen.
    • You must submit your Quarter Two Decisions prior to moving on this week’s Quarterly Business Review assignment.

Part II: Second Quarter Quarterly Business Review (QBR). You must submit your Quarter Two Decisions prior to moving on to this week’s Quarterly Business Review assignment. Prior to beginning work on your Second Quarter Quarterly Business Review, review the content from the Suggestions for Quarter Two Decisions pop-up and your Business Intelligence Dashboard. The graphics in the dashboard should provide you with the trends (that is the time series data is growing) in data to critically analyze your competitors for the few two quarters their positions for the longer term.

With the completion of Quarter Two, you are responsible for completing your second Quarterly Business Review (QBR). This is a qualitative and quantitative summary of your competitive performance for Q2. Business reviews (or Operational Reviews) are a routine part of annual corporate activities and are very cross-functional in nature. A major component of a QBR is around meeting commitments that are embedded in your budgetary planning process. Meeting commitments are seen explicitly in your Variances. These learnings are designed to enhance your performance in future Quarters.

In your Growing Your Business simulation,

  • Evaluate quantitative and qualitative techniques for business analysis and decision-making.
  • Utilize tools from finance, marketing, information technology and human resources management to manage the profitability of overall business operations in the second quarter.

The Second Quarter Quarterly Business Review Assignment

  • Must be completed through the Growing Your Business simulation.

    • After logging in, go to the Quarterly Decisions tab on the top right of the simulation site and then click on the Executive Summary tab to access the Quarterly Business Review section.
  • Must be completed and submitted using all of the data provided including
    • Quarterly Pre-Tax Net Income relative to Plan for the Quarter
    • Cash Flow walk
    • Pre-tax Net Income in Plan
  • Must show that Hisco is on track to Meet/Exceed its Annual Net Income Commitment through an evaluation of both quantitative and qualitative techniques for business analysis and decision making.
  • Must create specific business tactics to achieve organizational survival and growth.

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Explanation & Answer

View attached explanation and answer. Let me know if you have any questions.

Decisions for quarter one and qbr Outline
5 Key Learnings from Quarter
➢ The company realized a surplus of its sales revenues beyond what it had earlier planned.
The Sales variance in relation to the strategic projection plan of the firm is 11.52%. This
resonates with the projection and variance to the company's VRO.
Pre-tax NI Walk: Plan to Actual
➢ The chart displaying the Pre-tax NI Walk variances from the projection to the actual
value depict an increase in product prices.
Cash Flow Work for this Quarter
➢ An increase in the accounts receivables negatively impact the cash flow statement of the
company. The unsettled accounts receivables deprive the business its ability to settle its
recurrent bills then result to a shortage in the cash available for the business to operate
with.
3 Toughest Decisions Made and Why
➢ To begin with, the idea of gong for more credit to help facilitate financing of the
company's projects makes one of the major decisions that were not easy to make.
Competitor Analysis
➢ The competing firms take into account a huge percentage of the market share. This is
from their strategies to keep the massive following and clientele to them.
Use of Role Play for Information and Negotiation
➢ To making sure that each of the role plays goes through in a successful manner, we strive
to make it as realistic as possible.
Is your Original Strategy Working as you Planned?

➢ No. The general plan was based on the idea to improve the viability, profitability and
solvency of the firm. An analysis of the solvency ratios and other financial ratios reveals
the contrary as they all have negative results.
Are we on track to meet Annual Net Income Commitment? Provide explanation
➢ No. There is a continued expectation on the decrease of the values of the net income for
the company. With the decline in the net income, there is a huge chance that the
creditworthiness of the firm will dwindle even further.


Student: Khaled Khalaf

Q1-22 QBR
5 Key Learnings from Quarter
The company realized a surplus of its sales revenues beyond what it had earlier planned. The Sales
variance in relation to the strategic projection plan of the firm is 11.52%. This resonates with the
projection and variance to the company's VRO.
The actual production processing time is recorded to be lower than the planned processing time by
0.10.
Most of the discretionary costs were met as is with the company's projection. The actual and
planned discretionary costs are equal. However, the building lease and utilities costs were
underestimated by a value of $35,176 from the planned value. This represents an approximate
percentage of 64% variance from the planned amount.
The entire financial liquidity and solvency ratios for the company recorded a negative return.

Pre-tax NI Walk: Plan to Actual
The chart displaying the Pre-tax NI Walk variances from the projection to the actual value depict an
increase in product prices. This is attributed to the cases of possible increase in production prices
and the prices of complimentary services used in the production process like labor and raw
materials. This later result to inflation. The base cost is also seen to have decreased in the chart. This
results to a negative impact on the profitability of the firm while in operation. This decrease is
attributed to the increase in prices of the products as initially discussed, in addition, the phenomenon
is attributable to the availability of fixed costs or variable costs in the production process.
Furthermore, the productivity of the firm is impacted in relation to the initial results of the sales
volumes and the costs that the firm incurs proportionate to the revenues it realizes.

Cash Flow Work for this Quarter
An increase in the accounts receivables negatively impact the cash flow statement of the company.
The unsettled accounts receivables deprive the business its ability to settle its recurrent bills then
result to a shortage in the cash available for the business to operate with. The decision to have the
inventory level decreased also affects the performance and viability of the firm. The higher the
surplus inventory or stocks available, the more negatively impacted a firm becomes. This excess

Page 1 of 3

Student: Khaled Khalaf

inventory hurts the circulation of cash in a firm as it uses some of the money that would have been
put in a much better use than having to buy the stocks and keeping them in store where they could
otherwise go bad.

3 Toughest Decisions Made a...


Anonymous
This is great! Exactly what I wanted.

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