Financial Management Of HLW (Hawthorn Leisure Works)

by Kingstone J. Professional Writer

Identify the key factors that HLW should consider in its evaluation.

The key factors which get considered by the HLW for their evaluation such as:

HLW note reduction in the cost related to the administration with the implementation of the new membership plan as with its effect they didn’t need to prepare record in context to revenue collection from their respective members against the usage of the court, etc. The concern face by the management is the advance collection of the membership fees from their members against the services rendered by them. The another major concern is raised that there is reduction in the number of members due to the onetime payment of high membership fees but it is another view that many of the services are free for members according to the new membership plan Blair 2014.

Explain what type of financial analyses HLW should prepare in order to make a complete evaluation.

In order to evaluate the new membership plan completely HLW make effective financial analysis which get discussed below such as:

Business management calculate the liquidity ratio in order to evaluate the availability of their liquid funds so that they utilise it in effective manner. For the purpose of managing and controlling the available cash in hand HLW prepare statement of cash flows. In order to make the predictions of the cash inflows (revenue) and outflows (expenditure) they prepare cash budgets. HWL management prepare flexible or any other type of budget for their purpose and these get prepared well in advance and render effective support to the operational activities of the business.

Explain how HLW's cash management practices may differ from the present if the new membership plan and fee structure are adopted.

In HLW’s cash management practices there are few changes made which get discussed below such as:

The period of revenue recovery from the respective members is revised as per the plan of new membership. According to this plan members need to pay their fees well in advance for such facilities which get avail by them during the whole year tenure. According the new membership policy they prepare their cash budget only once in a year as they collect their revenue for once only. For the successful execution of the new membership plan they require effective cash management. For the purpose of adequate management of cash they need to prepare statement of cash flow which helps in managing and controlling the activities related to cash and cash equivalents.