Cash Sales Research Articles

Pay Me Later is Not Always Positively Associated with Bank Risk Reduction—From the Perspective of Long-Term Compensation and Black Box Effect

The relationship between executive compensation and bank risk-taking is one of the core topics of corporate governance theory. Especially after the 2008 global financial crisis, due to the characteristics of banks, such as systemic risk, this relationship has become more important. However, though usually calculated on the basis of cash salary and inside equity, which can promote risk incentives, inside debt was considered a tool for risk reduction in prior empirical analyses. Based on actual bank situations, we had doubts about this relationship and wanted to verify the specific relationship between inside debt and risk. We initiated this research by setting up a theoretical model between inside debt and bank default risk and by simulating the result using data from Wells Fargo & Co. to draw the function image. We are the first to define the three kinds of compensation in three dimensions. Then, considering bankruptcy, we found the black box effect exists. Therefore, different from prior views, pay me later not only reduces but also increases risk. We expect our findings to offer help to the formulation of policies for pay contracts.

Unicorn Stock Options - Golden Goose or Trojan Horse?

Large privately held startups valued at $1 billion or more (“unicorns”) are dealing with employees’ conflicts of expectations due to the illiquidity of the shares of stock acquired upon exercise of their options. Until about eight years ago, many talented workers chose to work for a startup company for a lower cash salary combined with a substantial stock option grant, and the dream of cashing out for a large sum of money after an initial public offering (“IPO”) of the startup’s stock. Today, unicorns remain private for extended periods of time in part because they are often no longer dependent on an IPO or a trade sale to raise sufficient capital. As a result, they are delaying liquidity events for their founders, employees, and investors, thereby causing their employee stock options to lose some of their allure as a hiring and retention device. This article examines a contemporary puzzle in Silicon Valley – is there a shift in unicorn employees expectations that results in labor contracting renegotiations? It explores the challenges faced by unicorn firms as repeat players in competitive technology markets. It offers the following possible solutions. First, new equity-based compensation contracts, and critiques them. Second, alternatives to the traditional liquidity mechanisms, and critiques them. It concludes with proposals to remove legal barriers to private ordering, and new mandatory disclosure requirements.

Idiosyncratic risk, managerial discretion and capital structure

This paper develops an integrated dynamic model to examine the impact of managerial compensation packages, namely, cash salary and ownership stake, and reservation income on the credit spreads and capital structure choice of a risk-averse manager who faces incomplete markets and costly effort. Our model predicts an inverted U-shaped relationship between credit spreads (market leverage) and managerial ownership stake, which reconciles empirical findings that are inconsistent with previous theories. Moreover, in contrast to the predictions of previous models, we find that credit spreads decrease with the manager's cash salary, whereas they increase with the manager's reservation income. Finally, we also demonstrate that the relationship between pay-performance sensitivity (PPS) and the firm's market leverage is dependent on the manager's ownership stake and cash salary; this prediction provides novel empirical tests.

Unicorn Stock Options—Golden Goose or Trojan Horse?

Large privately held startups valued at $1 billion or more (“unicorns”) are grappling with how to deal with employees’ expectations caused by the illiquidity of the shares of stock acquired upon exercise of their options. Until about eight years ago, many talented workers chose to work for a startup company for a lower cash salary combined with a substantial stock option grant and the dream of cashing out for a large sum of money after an initial public offering (“IPO”) of the startup’s stock. Today, unicorns remain private for extended periods of time, in part, because they are often no longer dependent on an IPO or a trade sale to raise sufficient capital. As a result, they are delaying liquidity events for their founders, employees, and investors, thereby causing their employee stock options to lose some of their allure as a hiring and retention device. This Article examines a contemporary puzzle in Silicon Valley: Is there a shift in unicorn employees’ expectations that results in labor contract renegotiations? To answer this question, this Article explores the challenges faced by unicorn firms as repeat players in competitive technology markets and offers the following possible solutions. First, it proposes new equity-based compensation contracts, and critiques them. Second, it suggests alternatives to the traditional liquidity mechanisms, and critiques them. Unfortunately, current securities and tax laws create legal barriers to private ordering, which prevent the parties from solving these issues on their own. This Article concludes with proposals to remove these legal barriers to private ordering to allow for the proposed solutions to take hold, accompanied with new mandatory disclosure requirements to limit the risks.

English

The study was conducted in Alice, Eastern Cape Province, South Africa. The objective of this study was to evaluate farmers’ perceptions on the impact of Vachellia karroo encroachment on livestock production and vegetation. Forty farmers (62% females and 38% males) were interviewed using semi-structured questionnaires. The results showed that goats and cattle were mainly kept for cash sales and sheep for wool production. Shortage of forage and lack of water points were the main constraints to livestock production, especially during the dry season. Cattle and sheep owners perceived that V. karroo encroachment had a negative impact on grazer production, as it reduces the grazing capacity of the veld. Goat owners viewed V. karroo as an acceptable tree to goats and its abundance favours browsers as compared to grazers. Although farmers have different views concerning the impact of V. karroo encroachment. The mean of livestock composition showed that goats (11.6±1.3) are more favoured by the veld condition compared to cattle (4.9± 1.1) and sheep (2.6±0.7). This study concludes that V. karroo had a negative impact on grazers’ production and sheep and cattle owners observed V. karroo encroachment as a form of land degradation. Pastoralists recommended that veld burning and bush clearing can be used to mitigate encroachment. Key words: Encroachment, degradation, livestock composition, Vachellia karroo.

Analysis of the Application of Accounting Information Systems for Cash Sales and Cash Receipts in the Company

The research belongs to the type of qualitative research, involving 3 informants as the main data source which is the leader and the staff at the CV. Sumber Abadi DeterSystem and cash receipts an the continuity of the performance process in the company CV. Sumber Abadi Determination of informant was chosen according to the relationship with the title of the researcher by making observation first in all the scope of the leadership and company staff CV. Sumber Abadi. The analysis tools used are data collection, data reduction, data display, and conclusion by paying attention to the data validity test equipment which includes credibility test, transferability test, dependability test, and confirmability test. The results of this study indicate the development of concept and theories that already exist in the accounting aspects of loading; 1) the existence of functions related to accounting information system for cash sales and cash receipt at CV. Sumber Abadi, cash receipt staff, the function of gunang employes, the accounting, function. 2) there are documents that are used such as order and sales note. 3) reports used are sales recap, card stock, credit card, proof of deposit and HPP recap. 4) the notes used are sales record and petty cash book records. And with the control starting from the elements of the organization authorization system, elements of healthy, practices up to the process of the system running

Evaluasi Sistem Pengendalian Internal Penerimaan Kas pada Apotek Kimia Farma 307 Banyuwangi

Internal control system in a company is one form of action used to safeguard property owned by the company. The existence of an internal control system is expected to prevent the risk of errors occurring either intentional or without the element of intent. The risk of such errors can be derived from the various parties concerned. This is one reason that good procurement control system in an accounting system in this case is in the system of cash receipts. From the observation while at Kimia Farma 307 Banyuwangi seen that in a system of cash receipts from cash income services namely health checks and cash sales are still very modest. The accounting system of the cash receipts of the business activity is only using the document pickup. When viewed from the frequency of sales and service checks every day, the system that has been used is deemed to be less effective in terms of internal controls. This study aims to determine in real terms how the internal control system of cash receipts and evaluation of internal control systems at these pharmacies. This research uses qualitative method to analyze the data. The data obtained from three data collection methods are interview, observation and documentation. Keywords: system of internal control, cash receipts in cash, accounting system, system evaluation

Analisis Perputaran Persediaan Terhadap Kas Pada Perusahaan PT. Rocky Mitra Bangunan

This research has a purpose to know the effect of inventory turnover to cash. Secondary data used in this research in the form of company financial statements of PT. Rocky Mitra Building period 2011-2013. Analytical methods used are qualitative and quantitative. The result of analysis from this research is inventory turnover can influence cash. The amount of inventory makes the cash reduced but if the inventory turnover also increases the amount of sales rose (cash sales) then the cash return will be faster

Dynamic Pricing with Point Redemption

Many sellers allow consumers to pay with reward points instead of cash or credit card. While the revenue implications of cash and credit card purchases are transparent, the implications of reward sales are not trivial, especially when a firm that issues points is not a seller. In this case, a seller receives a monetary compensation or reimbursement from the point issuer when a consumer purchases the good by redeeming points. In this paper, we examine how reward sales influence a seller’s pricing and inventory decisions. In particular, we consider a consumer who can choose to pay with cash or points based on her attributes – reservation price, point balance, and the perceived value of a point. Then, we incorporate this consumer choice model into a dynamic pricing model where a seller earns revenues from both cash and reward sales. In contrast to an intuition that adding reward sales will increase sales and revenue, we show that the effect of reward sales on the seller’s price is non-trivial as the seller could either add a premium or offer a discount depending on the inventory level, time, and the reimbursement rate. Furthermore, such price adjustments (premium or discount) can attenuate the optimal mark-up or mark-down level, and reduce the price fluctuation caused by inventory level and remaining time. We also investigate several settings where the seller has a different level of operational control over reward sales and show that the seller blocks the reward sales only when the reimbursement rate is very low. That is, allowing reward sales is still better even when the revenue from the reward sales is smaller than the cash sales. In addition, we find that a seller with an ability to control reward availability (i.e., allow a reward sale or not) can achieve a revenue similar to the revenue of a seller with ability to change point requirements and price at the same time.

THE DEVELOPMENT OF ACCOUNTING INFORMATION SYSTEM BASED ON EXCEL IN HELPING CV. LADI COLLECTION PREPARING THEIR FINANCIAL STATEMENT

Microenterprises in Indonesia is showing increasing progress, especially the printing industry. This study wanted to know what is the description of printing business cycle, accounting records on financial transactions, calculation of production costs and operating income. Research method used is study case at CV. Ladi Collection through field observation, interview, and documentation. Data analysis technique used is qualitative descriptive. From study result in CV. Ladi Collection, there are 2 types of business namely screen printing and school badge production. Accounting recording has been done but only limited to Accounts Receivable Bookkeeping. Many of cash receipts transactions from cash sales are derived from screen printing orders and expenditures were not stored and recorded. Solution on production costs calculation for CV. Ladi Collection is using job order costing for screen printing service and job product costing for badge production. This research also produces Excel design For Accounting (EFA), which consists of 7 sheets of the navigation sheet, beginning balance, journal, ledger, income statement, financial position statement, and depreciation.

ANALYSIS AND DESIGN CASH SALES ACCOUNTING INFORMATION SYSTEM AT UTAMA ALUMINIUM STORES

This research was conducted at Utama Aluminum Store which is a company engaged in general trading or general supplier and manufacture of various doors, frames, windows, X Panda, mosquito wire, and window displays. The purpose of this study was to determine and evaluate the cash sales accounting information system that was running at Utama Aluminum Store and to provide an alternative design of cash sales accounting information systems at Utama Aluminum Store. The data used in this study are primary data obtained directly from Utama Aluminum Store and secondary data obtained in the form that has been in the form of publications. The analytical tool used in this study is a qualitative descriptive analysis tool by analyzing the system using the COSO method, which then continues the conceptual design phase by designing a document flow chart (flowchart), Data Flow Diagram (DFD), Entity Relationship Diagram (ERD), Normalization. After that proceed to the physical design stage but only limited to designing database design, input, and output design. Based on the results of the study, the researchers found that the cash sales system run by the company was less effective because there were still a number of tasks in the sales section, and the warehouse section, and also the documents used were still not meeting the system requirements. In addition, the resulting report is a sales report that is only recorded in a book that can cause the resulting report to be ineffective and cause fraud. Furthermore, the researchers designed a cash sales accounting information system that is able to overcome these weaknesses and shortcomings. Keywords: Analysis, Accounting Information System, Cash Sales, Design

How Should Tax Reform Treat Employee Stock and Options?

This brief documents how the US tax system treats the most common forms of equity compensation, including stock, restricted stock units, and stock options. In most cases, these forms of equity compensation are taxed just like cash wages, salaries, and bonuses. Employees pay ordinary income taxes on the value they get from stock and most options. Employers deduct that value from their taxable income. And both employees and employers pay payroll taxes. The tax system thus creates a level playing field between equity and cash compensation. The large deductions businesses sometimes get for equity compensation—most famously when Facebook went public—are not a concern since they are accompanied by large tax payments by employees. Policymakers should maintain this equal treatment in any tax reform.

Reducing metal thefts through the use of local ordinances: An evaluation of an impromptu Market Reduction Approach in St. Louis, MO

This study evaluates the effectiveness of a local ordinance targeting rising residential metal thefts in St. Louis, MO. The ordinance addresses the ‘disposable’ component in Clarke’s (1999) CRAVED model and indirectly uses a Market Reduction Approach by limiting anonymous cash sales of certain scrap metals. Interrupted time-series analysis is employed to examine weekly pre- and post-intervention levels of metal thefts. Control factors include copper prices, local foreclosure and unemployment rates, and local average temperatures. Coefficients of the time-series analysis indicate a significant decline of scrap metal thefts after implementation of the ordinance. This decline is far greater (about 50 per cent) than for typical larcenies and burglaries (about 15 per cent). The results of this study suggest that prohibiting anonymous cash purchases of scrap metal is likely a viable and cost-effective way of achieving significant reductions in scrap metal thefts in markets where the bulk of thefts occur in residential settings.

EVALUATION OF MACROECONOMIC FACTORS FORMATION OF FINANCIAL SECURITY OF UKRAINE

Introduction. The financial security of the state is one of the most important components of economic security in general and in terms of its individual functional elements. The financial security of the country determines the level of attractiveness, competitive position in world markets and creates conditions for economic development of certain entities in prospective periods. The purpose of the paper is to determine the place of financial security in the economic security of the country, the main theoretical approaches to the interpretation of the concept of “financial security” and display its main components. The article is isolating the main factors in the formation of financial security in Ukraine, studies of trends and characteristics impact on the economy. Results. The study highlighted the threat of financial security, such as threats to publicsector debt policy threat, the threat of the insurance market, the threat of monetary economy, the threat of the currency market, the stock market threats and other threats. Based on statistical and other information, the analysis of safety parameters for each of the proposed components. This analysis allowed to conclude that for any of the indicators Ukraine's economy has not reached the threshold of financial security. Conclusion. Research essence of the concept of financial security allowed the state to distinguish two main approaches to its treatment: 1) emphasis on the protection of the financial interests of businesses due to the influence of internal and external factors; 2) highlights the availability of sufficient funds to meet the needs of the state, region and individual entities. The primary measures that can be used to enhance the financial security of Ukraine's economy as a whole, should be aimed at: reducing the budget deficit, lower inflation, increase in lending business structures, reducing the proportion of cash sales, increased foreign investment in the economy stabilizing the national currency, increasing the volume of financial resources for sustainable development of the economy in the long run.

Impacts of future compensation on the incentive effects of existing executive stock options

This paper analyzes the impact of compensation offered in the future on the incentive effects of executive stock options that have already been granted. I show that in many cases, subsequent compensation in the form of options is more likely to maintain the incentive effects of existing options than the subsequent grant of cash salaries or stock. The numerical results explain why firms continue to grant options repeatedly to executives. I suggest that, when designing pay packages or estimating the sensitivity of executive pay to firm performance, we should consider the impact of future compensation.

Full operating cycle influence on the food and beverages processing firms characteristics

Th e aim of the study is to determine the rules governing the modern cash management in food and beverages processing enterprises with a full operating cycle with a particular emphasis on environmental conditions infl uencing enterprises. Having a full operating cycle is defi ned as a situation in which the small or medium enterprise has a stock of materials or raw materials, which it then as a result of the technological process converts into the fi nished products, off ers them for sale through both cash sales and sales on the basis of the use of trade credit receivables. Used in this defi nition, full operating cycle consists of the conversion of inventories (including the time required to collect the materials and/or raw materials, processing them, and the time required storage of the fi nished products before transfer) and the full period of the collection of receivables. Research hypothesis is the belief that observed in many companies operating in industries using the full operating cycle, assessed by investigators as excessive cash reserves, are dependent on factors that give to describe the relationship between risk and uncertainty and the expected and realized under the conditions of risk and uncertainty in the value added generated by enterprises with a full operating cycle.

Joint replenishment and credit policies under two levels of trade credit financing when demand and bad-debt loss depends upon credit period

In practice, a firm usually receives trade credit financing from its supplier on the purchase of inventory. Similarly, in order to meet competition and generate credit sales over and above cash sales, the firm also gives credit period to their customers. However, the decision of granting credit period may have a disintegrating effect on cash sales apart from generating new credit sales because some of the cash customers may switch to credit purchase. In addition, despite of the best credit granting policies and collection practices, the firm may incurs some amount of bad debt losses because a certain fraction of buyers will undoubtedly be unable to pay off their debt obligations and become bad debt loss to the firm. In this paper, using discounted cash flow (DCF) approach, a mathematical model is developed to jointly determine optimal inventory and credit policies under two levels of trade credit financing when demand and bad-debt losses are dependent on credit period. The objective of the model is to maximize the present value of firm?s net profit per unit time by jointly optimizing the replenishment interval and date-terms credit period. Numerical examples and sensitivity analysis are presented to illustrate the effectiveness of the proposed model, and the results are discussed.

Evaluasi Atas Pengendalian Intern Penjualan Dalam Kaitannya Dengan Siklus Pendapatan Pada PT. Hotel Properti Internasional (HPI) "BeeOutbound"

The objective of this study was to determine the intemal control ofsale of PT HPI (dept. BeeOutbound), analyse PT HPI (dept. BeeOutbound) revenue cycle and to evaluate the internal control of sales in relation with the revenue cycle at PT. Hotel Properti Intemasional (HPI) (Dept. BeeOutbound). The method used in this script is a descriptive method, and the data collection procedure is done in two ways, namely library research to obtain secondary data, and field research to obtain primary data from the company. For the field research, the author uses three techniques namely are interview, observation, and survey documents. The results of the evaluation of intemal control of sales in relation with the revenue cycle, is that the method of sale applied by PT. HPI (dept. BeeOutbound) is a cash sale. In this case it can be described that intemal control of cash sales at PT. HPI (dept. BeeOutbound) has not been conducted in accordance with proper intemal controls as still occur germinating tasks performed by the administration and accounting. Although the outline of the internal control of cash sales in the revenue cycle is good enough and it is also supported by activities that always meeting regularly performed once a week to monitor the performance of the company and also the company's financial condition. When linked with the results of the evaluation of internal control of sale in relation with the revenue cycle then the PT. HPI has not met these requirements ofgood internal control.
 Keywords: Internal control of sale, revenue cycle.

Peranan Manajemen Kas Terhadap Persediaan Kas

Cash is one of the main resources to run a company's operations. Cash management executed properly can support the survival of a company where it can be seen from the cash supply.This research is conducted to determine how large a role ofmanaging inventory in cash management company from 2006 until 2010. And to perform inventory planning cash for 4 years later. Result of research on cash management PT. Cemani Toka can be said is not good enough and cause cash tumover is very low at PT. Cemani Toka and tend dispropotionately between the amount of cash sales. And advised to control and tighten cash flow and operating activities, focus in foreign exchange, but it also must set the standard management of cash inventory using the theory Harry G. Gutmann with a minimum cash balance 5% and maximum 10% from the current assets or the theory by Eugene F. Brigmann the optimum cash balance 1,5%from total assets.
 Keyword : cash turnover, the development of cash, cash flow

Light, Less-Filling, It's Blue Ribbon!

In an effort to draw support for his agenda of revenue sharing and salary limits, Major League Baseball Commissioner Bud Selig commissioned a Blue Ribbon Panel consisting of Richard Levin, Paul Volcker, George Will, and George Mitchell to make recommendations on reforming the national pastime. This commentary reviews and critiques the report. It concludes that the creation of the panel and its focus on competitive balance was a constructive step. In particular, the commentary praises the Report for focusing discussion on ways to ensure that all clubs have a regularly recurring reasonable possibility of postseason play. However, in several important respects, the commentary explains why the Report is unsatisfying. Its reasoning lacks the rigor and comprehensiveness one might have expected from such an expert Panel. The report establishes payroll disparity as a proxy for competitive imbalance but fails to provide a detailed analysis of causality in light of a history of competitive balance despite disparity. Its recommendation that weak teams be encouraged to increase payrolls, while wealthy teams be punished for maintaining high payrolls, harms the Panel's credibility as disinterested observers and creates the appearance of bias in favor of owners. Building on the Report, this Commentary suggests five concrete and plausibly acceptable proposals to improve competitive balance. Permitting cash sales of players subject to the Commissioner's oversight, establishing a mandatory minimum payroll at a level likely to permit clubs to viably contend for postseason play, imposing payroll maxima only on dominant teams, changing the Rule 5 minor league draft to limit the players on top teams that can be protected, and establishing procedures to reform or rid the industry of inept management, are all designed to give observers of the game the same hope for the future of our National Pastime that each fan perhaps will have, if these proposals are implemented, each springtime.