Thesis: Secondary Research on Cash Flows

Sample Thesis Paper

The secondary research as described in the methodology chapter of the current report is based on the literature review which includes books, articles, websites and annual reports of the two companies. The internal data in the secondary sources was obtained from the annual reports while external data was obtained from books, journal articles and websites. The annual reports provided the necessary data to support the primary research completed through survey questionnaire.

The annual reports of both Marks and Spencer and Debenhams provided comprehensive data related to the cash flows, management of cash flows and the elements affecting the speed of cash flows. The information analysed and observed in the annual report and other sources included in the literature review of Marks and Spencer and some data related to the techniques of speeding up cash flows from other sources is explained first. As the case is with most retailing stores the annual report of Marks and Spencer also suggests that the company has extensive cash outflows in capital expenditures and inventories.  The cash inflows of the company are highly dependent on the revenues generated through sales to local and international customers. The company’s cash cycle is dependent on trade debtors, inventories and trade creditors similar to the cash cycles of other companies. The annual report clearly indicates that the credit payment policy of the company for general merchandise is between 16 and 23 days while for food payments it is between 18 and 25 days. This indicates that the company can in fact increase the payment period for creditors after negotiations to delay payments to suppliers and creditors in order to speed up cash flows which the company has tried in the past with aggressive opposition and criticism from suppliers.

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