c9.41

1 answer below »

c9.41

Answered Same Day Dec 29, 2021

Solution

Robert answered on Dec 29 2021

106 Votes

Introduction
Hawthorn Leisure works (HLW) is a sports club offering its customers tennis court and
other physical fitness facilities. HLW is charging from its member’s annual membership fees and
hourly court fees to run its complex, cu
ently total strength of members of club is 2,000. HLW
charges different rates from different categories of members; HLW has categorized its members
into three major groups which are Individual, Student and Family.
HLW is cu
ently charging membership fees of $45 from individual, $30 from student
and $100 from family, students has been given the highest benefit while determining the amount
of annual membership. As per the trend register of members it is analyzed that almost half of the
cu
ent members are under the category of family and rest are students and individuals in almost
same proportion.
HLW has decided to change its membership and hourly court fees policy, HLW is
planning to stop charging the hourly court rates and instead of it they will charge more annual
membership fees. This decision is being taken for the purpose of cash management and we will
analyze the impact of such policy on the club as whole.
Planning of cash receipts
HLW is planning to change its membership and fee structure in an attempt to improve its cash
flow planning. Cash flow planning is an integral part of every business units, NPO’s, clubs etc. they
need to manage its cash position in an efficient manner in order to reduce its total cost of funds
i.e. ca
ying cost must be reduced to minimum possible without incu
ing any money on cash run
out cost. Investment in various instruments and organizations makes it possible to minimize the
cost of funds and simultaneously savings will yield the returns on the money invested in the
market.
If HLW will organize its cash flow in better manner than it can invest its cash in an
efficient manner and gain a better return on its investments. If cash receipts are not planned in an...

SOLUTION.PDF

c9.41

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment