A CASH MANAGEMENT IN A SUPPER MARKET STORE.

ABSTRACT
The most important resource needed to established and effectively run a business requires certain cash. A company’s cash requirements are planted out in the form of cash flow statement. cash flow statement provides information about cash receipt and cash payments of an enterprise over a given period of time. It indicates the pattern of cash generation and utilization. It reveals how cash is generated from operation and how payments are made such as taxes, dividends and debts. The knowledge go a way in determine the financial strength of that enterprise.
The work of others had done research textbooks, journals, hand-outs, seminar, workshops and conference were reviewed in course of this project.
The research instrument used in respect of this study is questionnaire and interview question are design on close ended format to enable the respondent provides answers to questionnaire easily and to make it very easy for the researcher to control and analyze responses.
It was also observed that with cash management strategies such as cash planning managing cash flow, investing surplus cash of idle cash and keeping optimal cash balance etc contributes effectively in cash flow management.

INTRODUCTION
Cash is the most liquid asset of any super market store. All supper market store whether large or small receive and pay out certain amount of cash in the process of business transactions.
Consequently for a company to have enough liquidity to meet its current obligation it requires good and efficient management for the fact the cash inflows and out flows are differently timed.
Cash is the basic input and the ultimate output and is made up of currency and demand deposit, the latter being more important for many super market stores.
Cash requirement tend to rise in proportion to the volume of transactions to ensure that the current liabilities are settled at the appropriate time, sufficient liquid assets should be maintained. Furthermore, there are other demands upon which the stores demand for cash such as cash payment of interest, dividend, and creditors for good supplied, repayment of the bank loans etc.

The importance of cash management cannot be over emphasized as the determination and maintenance of adequate cash or near – cash items (marketable securities) cannot be treated with indifference of those demand upon the industry for cash are to be met as when due. How much of the cash or marketable securities is to be held at any point in time involve fundamental decisions to be considered in relation to the firm’s liquidity and its cash payment. Such decision can be influenced by the availability of profitable investment opportunity. The opportunity cost of keeping a high level of cash balance is the interest that could have accrued to the firm if the cash has been invested. Conversely, to maintain a low level of cash can force a firm to accept quite consideration constraints upon its freedom of action.

What amount of cash balance should a firm keep? How can this amount of cash balance be arrived at? These are more similar questions, which can only be resolved by carefully examining the following issues.
1. Why do companies or industries hold cash and marketable securities?
2. What are the objectives of industries, which require cash management policy?
3. What are the factors that can influence industry’s level of cash balance? The study shall provide answers to the above questions and identify the benefits of operating a good cash management.