M.Com. (Business Management) / The objective of this study is to establish an alternative method in the presentation of cash flow information in order to provide management with a more effective technique to assist them in their decision making process. The presentation of cash flow information in accordance with current South African accounting standards, includes movements in working capital to maintain operations as part of deriving the amount of cash retained from operating activities. In this study it is suggested that movements in working capital should be treated similarly to that of fixed assets in the cash flow statements. This implies that movements in working capital should be included in cash utilised in investing activities with a distinction being made between maintaining and expanding operations. From literature available a model was developed to incorporate the change in presentation of movements in working capital. This change in the presentation of cash flow information enables management to determine whether dividends are in fact paid from internally generated cash or not. This model was applied to financial information of seven companies quoted on the Johannesburg Stock Exchange. The results are presented in Appendix 1 to this study where it is demonstrated that the model developed provides a more efficient method for cash flow reporting and that it can be adopted by management in their decision making process...
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:4269 |
| Date | 11 March 2014 |
| Creators | Prinsloo, Paul Jacobus |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
| Rights | University of Johannesburg |
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