Working Capital And Financial Environment Paper Ups Vs. Fed Ex

1227 words - 5 pages

FedEx and UPS are the two largest shipping companies in the world. From the early inception of each company, they have both had to face many obstacles. In today's world, the biggest challenge each faces is each other. This paper will examine elements of working capital for the most recent fiscal year, functions of intermediaries and financial regulatory bodies with the company, and the importance of control programs and effective internal control techniques to the selected organization.Working CapitalFedEx has a total working capital of $2,715,068.00 each day. This was figured out by subtracting the total assets $6,464,000,000.00 from the total liabilities $5,473,000,000.00 then dividing by 365 to get the total daily working capital. UPS has a daily working capital of $7,282,191.00, this equating from an annual working capital of $2,658,000,000.00. The following graphs, retrieved from UPS and FedEx's websites, shows the working capital in relation to assets and liabilities.Fed ExASSETSCurrent AssetsCash and cash equivalents$ 1,937Receivables, less allowances of $144 and $125 3,516Spare parts, supplies and fuel, less allowances of $150 and $142 308Deferred income taxes 539Prepaid expenses and other 164Total current assets 6,464LIABILITIES AND STOCKHOLDERS' INVESTMENTCurrent LiabilitiesCurrent portion of long-term debt$ 850Accrued salaries and employee benefits 1,325Accounts payable 1,908Accrued expenses 1,390Total current liabilities 5,473UPSControl ProgramsAll organizations use control activities or control procedures to "provide reasonable assurance that the company's established will be met and that financial reports are accurate" (Albrecht, Stice, Stice, Swain, 2005). Control activities may fall under five different categories, segregation of duties to improve efficiency through specialization of activities, proper procedures for authorization to reduce errors in transactions, documentation and records, physical control over assets and records, and independent checks on performance.UPS Control ProgramsThe United Parcel Service believes they have accurate and effective methods of controlling and recording their financial decisions. In the companies 2006 annual report to the SEC the company stated, "As of the end of the period covered by this report, management, including our chief executive officer and chief financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures and internal controls over financial reporting. Based upon, and as of the date of, the evaluation, our chief executive officer and chief financial officer concluded that the disclosure controls and procedures and internal controls over financial reporting were effective to ensure that information required to be disclosed in the reports we file and submit under the Exchange Act is recorded, processed, summarized and reported as and when required" (UPS, 2006).The external auditor Deloitte & Touche LLP, agreed with UPS'...

Find Another Essay On Working Capital and Financial Environment Paper UPS VS. FedEx

Working capital structure of Web Solution inc.: Financial analysis, Business Model, Market analysis of Pakistan

3180 words - 13 pages .1.5 million for the purpose of growth and operations. This funding will cover operating expenses and product development during this period.Breakdown of funds: Expenses: Costs: Advertising Rs.50,000 Legal Fees Rs.10,000 Office Rs.40,000 Working Capital Rs.100,000 Miscellaneous Rs.50,000 Sub-total Rs.250,000 Product Development: Rs.1,250,000 Total Rs.1,500,000 FinancialsThis section presents our financial

Lawrence Sports Working Capital Policy Paper

2323 words - 9 pages Lawrence Sports is a $20 million revenue company that manufacturers and distributes sports equipment. The company's weekly cash budgeting is a balancing act between accounts receivable receipts and short-term financing. Typically this type of budget would not present many problems but in the case of Lawrence Sports, their working capital strategies are not optimized to maintain a positive cash budget. This paper addresses Lawrence Sports use of

Lawrence Sports Working Capital Policy Paper

2437 words - 10 pages Lawrence Sports is in a quandary with the working capital policy. Currently, the corporation is relying on one major customer (Mayo Stores) and their accounting procedures to manage Lawrence Sports working capital. This is resulting in a cash flow crisis in times where Mayo has not honored the existing terms of payment. In order to maximize shareholder wealth, Lawrence Sports must establish cash balance requirements that will meet existing

Lawrence Sports Working Capital Policy Paper

3130 words - 13 pages Running head: LAWRENCE SPORTS WORKING CAPITAL POLICYLawrence Sports Working Capital Policy PaperKatrina L. BaileyUniversity of PhoenixLawrence Sports Working Capital Policy PaperA manufacturer and distributor of equipment and protective gear for baseball, football, basketball and volleyball, Lawrence Sports is a mid-sized company with $20 million in revenues. Its principal customer is Mayo Stores, the world's largest retailer, which accounts for

the relationship between working capital management and the profitability

1142 words - 5 pages fifth and final study, Hernán Etiennot, Lorenzo A. Preve, and Virginia Sarria Allende (2012) have came with a unique and interesting paper as it looks at the working capital from a different angle. They examine the relationship between the working capital and financial market and how this relationship works. Moreover, according to them the net operating investment should be financed by considering working capital as long term capital. Moreover

Managerial and Financial Accounting Paper

873 words - 3 pages accounting reports but it also shows everything from scheduling to toilet paper inventory. Financial Accounting provides the hard facts delivered by numbers, and as it has been said over time, numbers never lie. The numbers provided in the Financials are what will determine the forecast for the following year. These numbers are important because they are what will help the managers and other executives make sound business decisions for the

Capital Punishment: California's Financial Burden and Legal Nightmare

1719 words - 7 pages Capital Punishment in the state of California represents the ideals of justice in no way which can justify the great financial and legal burden required to maintain a system that has not actually put any person to death since 2006. It is somewhat of a mystery why California voters allow the process to continue despite having opportunities on fairly recent ballots to discontinue the practice. The current implementation of capital punishment in

Technological Revolutions and Financial Capital by Carlota Pérez Review

740 words - 3 pages Mencione las principales características del modelo de Carlota Pérez para explicar las crisis y los ciclos económicos.¿Estos conceptos tienen alguna aplicación a la actual coyuntura financiera internacional?Technological Revolutions and Financial Capital de Carlota Pérez describe la interacción entre la innovación técnica y los ciclos económicos de largo plazo. Sus principales

Capital Markets and Investment Banking Process Paper

1306 words - 5 pages Capital Markets and Investment Banking Capital Markets and Investment Capital Markets and Investment Banking Process Paper Sidney Jones University of Phoenix FIN 402 Investments Fundamentals and Portfolio Management Instructor: Sal Sadiq June 7, 2010 A company working toward elevating the funding via initial public offering (IPO) could nominate investment bank

A Sound Physical and Financial Environment Produces a Healthy Community

597 words - 3 pages A healthy community is one that produces a financial, communal and physical environment that allows people and families the opportunity to reach their ideal physical health and well-being. A thriving neighborhood does not impart hurdles to excellent health, and is one that promotes opportunities for favorable growth and progress. Health is not just the absence of ailment, but the existence of a collective physical, mental and faith based well

Ford Motor Company, Microsoft and Exxon - working capital, current ratio, and quick (acid-test) ratio

1316 words - 5 pages I will use liquidity ratios (working capital, current ratio, and quick (acid-test) ratio) to determine how much cash is available for the Ford, Microsoft, and ExxonMobil companies to pay their current debts? Liquidity is the company's ability to convert noncash assets into cash or to obtain cash in order to meet current liabilities (Shim, Siegel, 1999, p.276). (Note: All dollar amounts are in the millions and are cited directly from the annual

Similar Essays

Working Capital And Financial Environment Essay

1143 words - 5 pages figures. Some factors that compile the figures, combined by sales, inventories, debt owed, accounts receivable and investments. In business, the bottom line is how much money the company has at the end. One way to factor the result of the company's is subtract current liabilities from current assets. The difference between current assets and current liabilities is known as net working capital, but financial managers often refer to the difference

Ups Vs. Fed Ex Essay

1688 words - 7 pages operates the largest franchise shipping chain. The UPS Store Companies owned by UPS: UPS Air Cargo, UPS Aviation Technologies, UPS Capital Corporation, UPS Consulting, UPS Mail Innovations, Mail Boxes Etc., UPS Professional Services, UPS Supply Chain Solutions, and UPS TeleServices.Mission Statement:FedEx:FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business, and related

Fedex Vs Ups Essay

1235 words - 5 pages " spirit you expect from the trusted FedEx name.Yet today's FedEx stands for even more...UPS Overview:UPS is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide and operates the largest franchise shipping chain, The UPS

Case Study Fedex Vs Ups

1472 words - 6 pages . Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide and operates the largest franchise shipping chain, The UPS Store®.Companies owned by UPS:UPS Air CargoUPS Aviation TechnologiesUPS Capital CorporationUPS ConsultingUPS Mail InnovationsMail Boxes Etc.UPS Professional ServicesUPS Supply Chain SolutionsUPS TeleServicesMission Statement:FedEx:FedEx will produce superior financial returns for shareowners by