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ASSESSMENT OF CURRENT ASSET MANAGEMENT
WEGAGEN BANK (IN CASE OF ADAMA BRANCH)
A REASERCH PAPER
SUBMITTED TO ACCOUNTING DEPARTMENT FOR THE PARTIAL FULFILMENT OF BACHOLOR OF
ART’S DEGREE IN ACCOUNTING
BY: TIZAZU LEMA
ADVISOR: ANTENEH
GORFU
JIMMAUNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS DEPARMENT OF ACCOUNTING
January,
Jimma, Ethiopia, 2013
Table of content
Content page
Acknowledgement ........................................................................................................... I
Abstract
................................................................................................................. II
1.1 Background
of The Study................................................................................................
1
1.2 Background
of Organization............................................................................................
2
1.3 Statement
of The Problem................................................................................................
3
1.4 Objective
of The Study..................................................................................................... 4
1.4
Significance of Study ....................................................................................................... 4
1.5 Scope
Of The Study ......................................................................................................... 4
1.6 Limitation
Of Study ......................................................................................................... 5
1.7 Organization
paper ........................................................................................................... 5
CHAPTER TWO
Literature
review
2.
Definition of Current Asset ...................................................................................................... 6
2.1
Cash and Cash Equivalent ...................................................................................................... 6
2.2 Current Asset
Management .................................................................................................... 8
2.2.1 Cash Management ............................................................................................................... 8
2.2.2
Reason for Holding Cash .................................................................................................... 9
2.3 Management of Short
Term Investment ................................................................................. 9
2.4
Management of Account Receivable...................................................................................... 10
2.4.1
Account Receivable as an Investment ................................................................................ 10
2.5
Credit Policy and Administration..........................................................................................
11
2.6
Element Of Accredit Management Policy............................................................................ 12
2.7
Gathering Information on the Credit Applicant...................................................................
13
2.8
Short –Term Loan Management ........................................................................................... 13
2.8.1
Bank Lending Policies and Procedures ............................................................................. 14
2.8.2
Regulation of Lending ...................................................................................................... 14
2.9.9
Bank Liquidity Problem ..................................................................................................... 14
CHAPTER THREE
3.1
Area of the Study ................................................................................................................. 16
3.2
Research Design ................................................................................................................... 16
3.3
Data Types and Source ........................................................................................................ 16
3.4
Method of Data Collection .................................................................................................. 16
3.5
Sample and Sample Size.......................................................................................................
17
3.6
Sampling Technique and Forget Population ........................................................................ 17
3.7
Method of Data Analysis ..................................................................................................... 17
3.8
Method of Presentation out Come ........................................................................................ 17
CHAPTER FOUR
Work and cost plan
4.1
work plan..............................................................................................................................
18
4.2
cost plan ............................................................................................................................... 18
ACKNOWLEDGEMENT
First and for most I would like tank almighty God
who give me healthy and strength.
Secondly, I would like to thank my advisor Ato
Anteneh Gorfu for his patient and invaluable advice throughout the time of his
research paper
Finally I want to acknowledge those people who helped
me by their idea and on my work.
ABSTRACT
The basic aim of this study is to assess
current asset management wegagen bank which is found in oromia region in Adama
area. Current asset management is the handling of current asset of the company.
Current asset management of the bank is cash, Short terms investment and
accounts receivable. This research paper is conduct on the assessment of
current asset management of wegagen bank using primary and secondary source of data.
Data type used in this research is quantitative and qualitative type data.
Unstructured interview and questionnaire used for the collection of primary
data for year. Balance sheet and income statement of the data bank used as
secondary data. After collecting the necessary information and interpreted
carefully, discriptive methods of data analysis would be used. The analyzed
data are interpreted discussed using tabulation, percentage and by Appling the
case study principles. Finally, cash management, Short term investment
management and account receivable management of the wegagen bank during the
period under research are in a proper management.
CHAPTER ONE
1.1 Back ground of the study
Current asset are cash other asset are
expected to convent to cash within a year. Current asset are presented on
balance the in order of their liquidity the case with which they can be converted
to cash and time it takes to convent them.
The most important item found in the
current section either are cash and cash equivalent, marketable securities
account receivable and inventories (roses. 2000. Page- 446).
In other way current asset are short-
term asset either are cash will become cash or will be used in operation in one
year. Examples are retable will collect in go days, or inventories on hand that
will be sold in the neat quarter (louder back 1993: page 104).
Cash and market able securities are the
most liquid of the friend asset cash is the reedy currency to which all liquid
asset can be reduced. Market able securities are short term investment can be
reduced. Market instrument that are used by the firm to obtain acetum on
temporary idle fund. To gather cash ad market able securities act and a pool of
fund that can be used to pay bill as they come due and to meet any an expected outlaid.
Because the rate of interest applied by bank checking account is relatively law
the firm tend to use excess bank balance to purchase market able securities the
firm most therefore determine the appropriate balance for both cash and marketable securities to nodule the rise of technical insolvency to
acceptable level. The desired balance determined by carefully considering the
motive for technical insolvency and the lover they are the lower the risk of
technical insolvency and are the hither the risk of technical insolvency (e.j
Gitman 1997.p. 788) .
To improve the working of financial intuitions
specially banks to introduce new activities or opportunity to the organization
current asset management is very important so in to survive and fulfilled objective
and obligation financial intermediary as whole and wegagen bank as particular
financial intermediary must manage their current asset properly.
Back
ground of the organization
Wegagen bank is privately owned share
company which started operation on June 11. 1997 with subscribe capital of birr
60 million and a paid up Capital birr30 million. Vision:- of bank becoming the
most preferred bank in Ethiopia. Mission: to provide wide range of quality
banking service through a dynamics work force and up to date it solution to
satisfy the desire of all stakeholder.
Main objective
A. Maximizing
profitability through increased efficiency
B. Enhance
growing market share.
C. Expanding
the bank capital base
D. Ensuring
excellence in customer services
E. Provide
differentiated varied and valve added banking service.
Wegagen bank is appointer bank to
introduce adore banking system in July 2000. There by managed to neutral the
lead of office organ city branches and 10 some of the outing branches. at
present migration of the existing core banking system in to more ver. and iso-
standard 10 union is completed. The bank has also implode mended a fully
fledged card payment system enabling its customer to get 2417 banking service,
on our Atm network, and on posterminal as well
Wegagen bank is governed by the board of
director committing of a chairman vice chairman seven director. The overall
management is entrusted to the management team which comprises the president
chief executive officer who is appointed by the board of director two vice
president and twelve deponent managers.
1.2 Statement of the problem
Current asset management is the handling
of the current asset of the company. Any asset that accompany or business has
that is the equivalent of the cash or be liquidated in to cash in the period of
year is considered a current asset. Typically, Current asset are inventory of
accompany has, as well as the account receivable and short term investment it
has anyplace. (www. Wisgeek. Com. 9:30 Am).
One of the major problems of financial
institution is improper management of current asset which would have greater
impact for the survival of the company, because of liquidity problem. Loss of profit,
unable to fulfill customer demand, and fear to survive.
Unlike other financial institution bank
more likely to fail due to liquidity problem unable to honor their promise to redeem
deposit demand lacks of adequate liquidity is often one of the first sign that
a bank is series financial trouble. Bank may begin to lose deposits which
erodes its supply of cash and force the institution to dispose fits more liquid
asset (rose 1999.page. 350).
Problem of ensuring their accountability
bank a sound current asset financial and management may have critical impact on
bank day to day operation.
Wegagen bank currently use different
technique manger it current asset such as liability to asset limit, Payment and
settlements account. and reserve account. However ,most liquidity problem in
wegagen bank arise from outside the bank as result of the financial activity of
its customer. In effect. Customer liquid problem gravitate toward their bank.
The research would their to asses
problem area of current asset management and practice of wegagen bank by
raising the following basic research questions.
1. How
does the bank implement the lending policy?
2. Does
the bank cash liquidity?
3. What
technique does the bank use to manage its cash and short term receivable?
4. Does
the bank manage liquidity?
1.4 Objective of the study
General objective
The general objective of the study to
assess the current asset management of wegagen bank.
Specific objective
The study would be tries to have the
following specific objectives
To
identify the problem of the bank face during in management its cash and short
receivable. To
asset the liquidity position of the bank. To
assess short term loan collection policies and procedure To
assess the bank cash liquidity. To
give some construction suggestion and recommendation based on the fact of the
study.
1.5 significance of the study
The study would be useful in light the
strong and weak point in current asset management of wegagen bank. The studies
would initiate other research in the area for further study. In addition the
research believes that the study may be help full in Ethiopia context and
wegaen bank Adama branch in particular.
1.6 scope of the study
The scope of the study is delimited to that
area which reveals the current asset management of wegagen banks. According brochure
(Dec- 2012) wegagen bank has net work of 63 branches of which 28 are in Addis
Ababa and the remaining 35 are located in other City and town of the countries
and the researcher tried to focus one of its branch found in Adama branch about
how current ass’s management took place of the three year. The research use of
quantitative and of qualitative types of data and both primary and secondary
source of data used.
1.7 Limitation of the study
Initially, it would hope that this study
would be conducted successfully however it seen to researcher difficult to do
without only sufficient necessary material such as.
·
There is no enough computers to use
interest service.
·
The organization employer are not
responsible it give enough information
·
Lack of finance to print necessary not
form internet
·
Time scarce
·
Lacks of the necessary book in library.
1.8 Organization of the paper
This research has four chapters. First chapter
with introduction include background of the study. Background of the organization
statement of the problem. Objective of the study, significance of the study
scope and Limitation of the study. The third chapter is about methodology.
Finally the fourth chapter deals with about the cost and financial budget.
CHAPTER TWO
Literature review
2. Definition
current asset
Current asset is part of by cyclically
repeated business operation at a period not exceeding one year and comprised
asset of various nature.
The asset of financial character are
cash securities account receivable and prepaid expanse and those tangible
natures comprise inventors of materials, goods and finished product. The component
of tangible current assets requires in wring casts of their purchased and strobe
and at some time they freeze capital. Additionally the eminence inventory
involve greater risk than the maintenance of components of finical nature only,
as before being converted in to cash it still needs to so through specific transistor phases ( www. Baits.
1200:ly/./112 Pd/).
The aim this article is to present major
problem concerning management of the component of the current asset, i.e. cash
account receivable and inventory of the company.
2.1 cash
and cash equivalent
Cash of often called “non earning
assert” it needed to pay for labor and draw material to bad dividends and soon
however cash itself and also commercials checking account earns net interest
thus, the goal of the cash manager hold for use in conducting its normal
business activities yet, at the sometime to have sufficient cash (1) to take trade
discount,(2) to maintain its credit rating and (3) to meet unexpected cash need
(Bring hem . 1995).
Marketable
securities
Are more liquid group of asset and thus
the next category presented under current asset: At the time of acquisition,
debit and equity securities classified as trading available for sale and hold
to maturity.
Treasury
bill
Are short term obligation of the federal
government and are popular to “park fund” because of large aid active market.
Although those securities are originally issued with maturely 91 days, 182 day
and one year the investor may buy an outstanding T- bill with as one day
remaining perhaps, two prior investor have held it for 45 day search).
Treasury
note
Is Government obligation with majority
one to 10 years, and they may purchase with short to intermediate term fund.
Federal
agency securities
Represent the offerings of such
governmental organization as the federal home loan band and federal bank.
Though locking the direct backing of us treasury, they are guaranteed by the
issuing agency and provide all the safety that one would normally require.
There is an execentent secondary market for agency securities that allows
investors to sell an outstanding issue in an active and liquid market before
the maturity date. Government issue ay slightly higher yields then direct
treasury issues.
Certificate
of deposit (CD)
Offer by commercial banks saving and
loan and other financial institutions. The inventor places his/her fund deposit
at a specified rate over given time period evidenced by the certificate
received.
Banker
acceptance
Are short term securities that generally
arise from foreign trade? The acceptance is draft drawn on a bank for payment
when presented to the bank. The difference between adrift and check is that
accompany does not have deposit fund at the bank to cover the draft unit the
bank has accepted the draft or payment and presented if to the company. In the cost
of banker acceptance arising from foreign trade the draft of may be accepted by
the bank for future payment of the required amount (Block. 1997, p.176).
2.2
Current asset management
2.2.1 Cash asset management
According to block (1997) cash
management involve control over the receipt and payment of cash so as to minimize
non earning cash balance.
Cash management is the art of keeping
corporate cash balance at the lowest level, since cash is non productive asset
without jeopardizing short term liquidity. Banker’s assist corporate cash
managers in establishing zero balance accounts, which are emptied in to
interest- earning accounts at the end of every day. Controlled disbursement accounts the total
volume of checks that will cleared against its corporate checking account every
day. The ultimate goal is to accelerate collection of receivables from
customers, while delaying payable as much as possible to investment end
financing to interest bearing over night accounts. The basic objective of in
cash as low as possible while still operating the forms activates efficiency
and effectively.
According to Ross (2000) separate cash
management has three steps
®
determining the appropriate target cash
balance
®
collecting and disbursing cash
efficiently
®
investing “ excess” cash in marketable
securities
Determining appropriate target cash
balance involves an assessments of the trade of between the benefit and cost of
liquidity if the form has achieved its
target cash balance, the value it get from the liquid provided by its cash will
be exactly equal the value for gone interest on an of equivalent hording of treasury bill. In other word the
note present value from doing so is
positive.
After the optimal amount of liquidity is
determined the form must establish procedure so that collection and
disbursement of cash are done at efficiently as possible.
Finally firm must invest temporary ideal
cash in short term marketable securities
2.2.2 Reason for holding cash
1. speculative
and precautionary motive is the need to hold cash in order to be able to take
advantage of,
2. The
precautionary motive is the need for safety supply to act as financial reserve.
Once again, there is the probability is a precautionary motive for liquidity.
However give than the valve of money market instrument is relatively certain
and that instrument such as T- bill more extremely liquid there is precaution
and purpose.
3. The
transaction motive cash is needed to satisfy the transition motive, the need to
have cash on hand to pay bills.
Transaction – related needs come from
the normal disbursement and collection activities of the firm. The disbursement
of cash includes the payment of wages and salaries, trade, debits, Taxes and
dividends.
4.
Compensating
balances
Compensating balance are another reason
to hold cash balance are kept at
commercial bank to compensate for banking service the firm receive, S.A minimum
compensating balance requirement by
banks providing credit service to the firm may impose a lower limit on the level of cash hold(
Ross.2000.p.571).
2.3 Management
of short term involvement
Are securities that brought and solid in
the primary or secondary securities market. these securities are reaching to
maturity within one year and are noted for their low risk and ready marketability. These securities are considered
appropriate investment in the current
asset management non financial bank acceptance and money market mutual fund are
suitable as short such treasury bill securities short term or term temporary
investment after negative the researcher tribe to see only treasury bill
because the restore not applicable in Ethiopia context.
Treasury bill: commonly referred to as
T- balls are her direct obligations of the state government bill are
particularly attractive to bank because of their high degree of safely. Bill are
supported by taxing power of the federal governments, their market price are
relative stable and they readily marketable bills are issue and trade as
discount from their part value without promised interest rate.
The minimum purchase size is $10,000 new
issue of T- balls are sold by state treasury and are available in three original
maturities 91 days , 185 and 52 weeks other maturities can be obtained by
purchasing previously issued t- bill in
resale markets. They yield the smallest rate of return among short term
investment because they have no default risk. The short term manures of T- bill
serve to maize interest rate risk (never, 1985 p. 199-181).
2.4 Management
of account receivables
An increase portion of investment corporate
asset in accounts receivable as expanding sale forested at time by inflation
pressures. have placed additional burden on firm to carry large balance for
their customer Frequently recession have also stretched our the terms of
payment as small customer have had to rely on supplier for credit account
receivable as percentage ago of total asset have almost delved between 1950 and
the mid 1990s, Now representing over 20 percentage of total asset for the over
rage us corporation.
2.4.1 Account receivable as an investment
As true of other current asset account
receivable should be thought of as an investment. The level of account
receivable should not be judged tool like or tool low based on literal standard
of industry norms, but rather the test should whether the level of return we
are able to earn from this asset equal or exceeds the potential gain from other
commitment. Clear their account our account receivable balance will increase
Drawing funds from us are marketable curtsied
and perhaps drawing down the inventory level.
We must ask whether we err optimizing
our return in height of appropriate risk and liquidity consideration.
2.5 Credit
policy administration
In consideration extension of credit
there are three primary policy variable
To consider in conjunction with our
profit objective.
1- Credit
standards
2- Term
of trade
3- Collecting
policy
1-
Credit standard: the firm determines the
nature of credit risk on the basis of prior records of payments financial
stability currently worth and other factors, when an account receivable is
credit has been extended to the terms of trade.
Bank sometimes: refers to the ads of
credit character capital capacity condition and collateral as indication of
when their loan will be repaid on time letter or not at all.
® Character:
refers to moral and ethical quality of the individual who is responsible for
repaid the loan. A person of principle or accompany run by people of high
ethical standard is expected to be good credit risk. A decision on character is
judgmental call on the part of the lenders and is consider one of the most
significant considerations when making a loan.
® Capital
– is the level of finical resource available to the company seeking the loan
and loan involves an analysis of debt to equity and the firm’s capital
structure.
® Capacity:
referees to availability and substantionality of firm’s cash flow at level
enough to pay off the loan.
® Condition:
refers to the sensitive the cash flow to economy the more the credit risk of
the firm. When the economy is in recession, business heal thing general is
leaker and most firm are riskier
® Collateral:
is determined by the asset that can be pledged against loan much like in out
mobile serve as collateral for acre available to be sold by the lender if loan
is no repaid obviously the better the duality of the collateral, the lower the
risk of the loan.
2.
Term of trade
The stated term of credit extension will
have a strong impact on the eventual size of the account receivable balance .it
affirm average $ 5000 in daily credit sale and allow 3day terms the even
account receivable balance will be $150,000. It customer are carried for 60
days we must maintain $ 300,000 in receivable and much additional financing
will be required.
In establishing credit term the firm
should also consider the use of a cash discount.
Offering the term 2/10,net 30, enable
the customer to deduct 2 percentages
from the face amount of the bill when paying within first 10 days.
3. Credit
policies
In assessing collection
policy a number of quantitative measures may be applied to the credit
department of the firm (block, 1997.p.180-185).
2.6 Elements
of accredit management policy
Criteria for extending credit two types
of decision are involved in extending credit when customer required to credit
for the first time then the customer required to submit financial and related
data with credit reference. The service of credit agency or credit bureau used
to obtain additional information about customer financial condition and recent
credit history. Other type of decision occurs when and established credit
customers filled crowingly unless the dollar from an established credit
customer submit filled routinely unless request extended credit term or the
customer become as low paying account.
Technique to protect receivables: most
account receivable represent tale made on open account this means the seller is
unless cured creditor of the customer. The credit be sway for seller to protect
its account receivable is refuse credit to those potential customer
The
best way o for seller to protect its account receivable is reuse to protect
account receivable is reuse credit risks the merchandise sold on credit is used
as collateral to secure the sale and then the sever become a secured creditor
of the customer.
Collecting
procure: credit policy congaing procedures used in collecting slow- paying and delinquent
accounts. The policy must well out which steps the corporation 10
Information
willing to take in collecting receivable and in what order those action are be
taken (neveu, 1985, p.185).
2.7
Gathering information on the credit
applicant
For
evaluating the credit information worthiness of customer is available from a
variety of source including financial statement submitted by the customer
credit reporting organization bank and the company own prior experience with
the customer. These sources differ with respect to their cost and the
reusability of the information they provide.
A.
Financial statement: accompany can ask
accredit applicant to supply various kind of financial information such income
statement and balance sheet (preferably advised ones). And possibly even
forecast financial strength and the applicant ability to replay credit
obligations. Unwillingness on the part of the applicant to supply financial
statement may indicate the finical weakness and suggest the need for more
detailed checking the Wright refused to extend credit.
B.
Credit:- reporting organization: A
number of organization collect
information on the finical position and standing of business other companies
and lending intuitions that are considering extending credit to accompany may
obtain information about it from these organizations usually for a fee.
C.
Bank:- may bank will assist their
business customer in obtaining information on the credit worthiness business. Through its contact with other banks,
a customer bank often can obtain detailed information on the payment patterns
and financial status of the company under investigation and pass.
D.
Prior experience with the costume:- A company’s experience with accredit customers
can be extremely useful when credit it currently grants to the customer or both.
2.8 Short
–term loan management
It is one of the major function which
finical institution under taken for proper mobilization of fund. Its function
also indicates loan and advance .safety of financial institution loan and advance
is taken and condition on which loan will be made available.
2.8 .1 Bank lending policies and procedures
The principles reason banks are chartered by
state and federal authorities are to make loan to their customer. Making loan
the principal economic function of banks to fund consumption and investment spending
functions has great deal to do with the economic health of its region. because
bank loans support the growth new business and job within the bank trade
territory and promote economic vitality (Rose. 1999. P.517).
2.8.2 Regulation lending
The loan portfolios of any bank liability
influenced by regulation because, the facility of bank loan has more to do
within risk and safety any other aspect of the banking business.
The quality of bank loan portfolio pontrtifion and the soundness of its
lending policies are the area federal and state bank examiner look at most closely
when examining a bank (Rose, 1999.p.
522.504).
2.2.9. Bank liquidity problem
Most liquidity problem in banking arises
outside the bank are result of the financial activities of its customers. In
effect, customers liquidity problem gravitate toward their bank.
The essence of the liquidity management
problem for bank liquidity equal to the supply of liquidity at any particular
moment in time. The bank must continually dial with either a liquidity deficit
or a liquidity surplus.
There is a trade between bank liquidity
and profit ability the more bank resource are tied up or readiness to meet
demand for liquidity the lower is that
bank expected profitability.
Why bank face significant liquidity
problem?
The significant exposure of bank to liquidity
pressure arises from several sources:-
I.
Bank borrow large amount of short- term deposition and reserves from
the individual and business and other lending institution and then turn around
and make long term credit available to the borrowing customer.
A
problem related to the maturity mismatch situation is that banks hold an
unusually high proportion of liabilities subject to immediate payment, such as
demand deposits, now accounts and money market borrowing.
Thus, bank must always stand ready to
meet immediate cash demand that can be s
s substantial at times.
II.
Another source D) liquidity problem is
the bank sensitivity in interest rate. When interest rate rise. Some depositors
withdraw their fund in search of higher return elsewhere. Many loan customers
may postpone new loan requests or speed up their drawing on those credt lines
that carry lower interest rates. This changing interest rate, affect both
customers demand for loan each of which has a patent impact on bank’s liquid
position moreover, movements in interest rate affects the market value of
assets of the bank may need to sell in order to raise additional liquid funds,
and they are directly affect the cost of borrowing in the money market ( Rose,
1999, p. 350- 351).
CHAPTER THREE
Research design and
methodology
3.1
Area of the study
The
research under the title of assessment of asset management would plane carried
out at wegagen bank which is found in Oromia region, east shoa, in Adama town.
3.2
Research design
The
research is design to answer the question posted and attain the general and
specific objective of the research. Descriptive types to assess current asset
and management of the bank.
3.3
Data types and source
The
research used both quantitative and qualitative types of data. The research
would predominantly conduct on both primary and secondary source of data.
3.4.
Method of data collection
For
conducting an effective scientific research accurate and reliable data are very
important so, the necessary information is collected through different method
of data collection. In this study both primary and secondary source of data is
used for the enable the collection of primary data unstructured interview are
conducted with the leg of financial manager and employee of the bank since it enable
the researcher to ask further question beyond what the researcher interested
can generate detailed data and enable in depth understanding of phenomenon.
Unstructured interview selected. Data collected from other source is not enough
so questionnaires are included. Secondary data would collect from unpublished material
of wegagen bank credit policies and procedures manual. Cash management manual
and published audited finical statement including balance sheet and income statement
of sampled companies for period of three year before using both types of data
the research would cheek its reliability and adequacy.
3.5.
Sample and sample size
From
total worker of wegagen bank Adama branches to the student’s research would conduct
15 employees of the bank.
3.6
Sampling technique and target population
The
respondents were selected with non- probabilities sampling design i.e.
judgmental sampling would use and considered to gather primary data. The study
use this sampling because management and employees of the bank are the only
that can provide sufficient
and
accurate information for the study.
To
gather relevant data those would consider being knowledge about the topic had
select. Those respondents are credit and risk department manager, accounting
and finance department manager of the bank. Structurally design of
questionnaire was distributing to the respondent so as to together the primary
data.
3.7
Method of data analysis. For
The purpose obtained related information about subject matter. The response
would be analyzed by applying the case study principles. The audited financial
statement would also analyzed descriptive method of data analysis with common
financial tools like ratio, which would construct by researcher. In addition to
this, table would also used to identify the trend of the ratio.
3.8
Method of presenting outcome
After
the process data analyzed is completed the analyzed data is summarized and
presented by means of tabulation. The analyzed data is presented inform of percentage.
CHAPTER
FOUR
Work
and cost plan
4.1
work plan
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Activity
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Nov
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Dec
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Jan
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Feb
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Mar
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Apr
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May
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1
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Problem
definition
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2
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Literature
reverent
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3
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Propose
development
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4
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Question
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5
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Data
collection
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6
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Data
analysis reporting
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7
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Presentation
of reporting
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4.2
cost budget
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No
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Unit
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Unit
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Quantities
|
Unit cost
|
Total
cost
|
|
1
|
For
stationary
|
Pact
|
1
|
90
|
90:00
|
|
|
Banding
material
|
|
3
|
6
|
18:00
|
|
|
Pen
|
1
|
5
|
3.5
|
175:00
|
|
|
Pencils
|
|
5
|
3
|
15
|
|
|
Transparency
|
|
1
|
15
|
1.5
|
|
2
|
Typing
propose
|
Page
|
1
|
4
|
68
|
|
3
|
Typing research report
|
|
17
|
|
|
|
4
|
Miscellanies
|
|
|
|
80.00
|
|
5
|
Transport
|
|
|
|
50
|
|
6
|
Contingency
|
|
|
|
60
|
|
|
Total
cost
|
|
|
|
800
|
BILIOGRAPHY
Black 1997 fundamental financial management
(3rd) the order press. New York
Binrgham E.f (1995) fundamental of financial
management (7th ed) the Dryden press: U.S.A
L. J. Giman (1997) fundamental of financial
management
Launder back (1993) survey of accounting
(3rd) west public company.
Neveu R.P (1985) fundamental of material
financial (2nd) south western purchasing company
Rose p.s (1999) commercial bank
management (4th) mc Graw –ill company
Ross S.a (2000): fundamental and
corporate finance (4th) mc Graw- ill c
Internet www BaitalsL 2005:/L/---/112 pd
JIMMA UNIVERSITY
FACULTY OF BUSINESS AND ECONOMIC
DEPARTMENT OF ACCOUNTING
Dear respondents
This
questionnaire is designed to collect for information for currency asset
management of wegagen bank in Adama branch.
The research
there for, kindly requested to complete this questionnaire genuinely and
honestly.
Please fill the
question below
Remark
v No need of writing your name
For choice put (Ö in the box
provided and write appropriate answer for the bank space questions.
Personal data:
I.
age: 18-21 26-35 36-45 above 45
II.
Sex: male female
III.
Educational
status: Diploma
degree master
Questions about bank
1. Does
the apply the theoretical aspect of current asset man agent?
2. What
type of technique does the bank use to magnets current asset
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
3.
Does the bank
hold idle cash?
4.
If your answer
for question number 3 is “yes” how often?
Weekly monthly
5.
Does the bank
hold idle cash?
6.
If your answer
for question number 5 is “ yes” where does the bank invest the ideal cash
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
7.
How does the
bank manage its cash payment receipt?
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
8.
How does the
administer its cash gap?
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
9.
What are the
types of loan service provided wegagen bank?
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
10. For low long the bank gives a loan?
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
11.
What are the
lending policies of this bank?
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
12. Does the bank follow the lending policies no
13. What types of problem the bank face to collect loan?
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
14. What technique does the bank use to manage its short
term receivable?
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
15. How do you evaluate the performance (profitability)
of the bank?
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
16. Does miss management of current asset have impact on
the service of the bank?
17. If your answer for question number 16 is “yes” are
those impacts?
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
18. Does
the bank manage liquidity?
19. If
your answer for question number 18 “yes” how?
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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