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Monquimic, S.A.

García Prat, Antoni ; Prat Mora, Lluís ; Faus, Josep

Reference: F-743-E
Year: 2001
Number of pages: 4
Publication Date: Feb 11, 2003
Source: IESE (España)
Type of Document: Case

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Description

This case allows a class examination of the cashflow of a company with sales offices all over the country. The company receives a percentage of its payments at the sales offices, and the method used to transfer these funds to the central office implies losses in its float. From the accounting perspective, Monquimic S.A. should receive these payments in a centralized account, thereby optimizing management, but the sales department resists any change, as it is satisfied with the current system, as well as with the banks used by each sales office.

Learning Objective

The aim of this case is to decide the advantages and disadvantages of operating with a specific number of financial institutions.

Keywords

Balance Sheet Analysis Cash Current assets