Research Proposal

Khul Supermarket
Amanuel Wubshet
Dagim Desalen
Samson Damtew
Mr.Guta
INTRODUCTION
Background of the Organization

Khul Supermarket coined its name from the highest peak of

gratitude and aspires to be unparallel in the market.

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Khul Supermarket was established on October 20, 1995 as a
private retailer company with an authorized and subscribed
capital of birr 500,000.
 Background of the Study

Cash management is the handling of the cash asset of a company and is the
anticipation, management, and satisfaction of cash. Any assets that a company or
business has that are the equivalent of cash. The management of cash is an essential
part of the business planning process.

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The one that lit the study was the lack of Planning, measurement, and
evaluation schemes witnessed by the gap of available cash on hand
and the receivables. Where the profit is too little to satisfy the goals
and objectives for expiring products.

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It is very essential for management to decide how much of each element
should be held, because there are costs associated with holding either too
much or little of each element, (pandely, 1999)
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In light of these benefits, the supermarket industry of gives due emphasis to
strengthening the balance between cash and payables, receivables. Among
those Showa Supermarket is one of them. However, enhancing the company
capacity through the use of its current asset depends on sound full asset
management. Thus, the realization of organization’s performance and a
development, however, is strongly linked with various factors like
organizational structure, are of receipt technology, resource/asset
management
LITERATURE REVIEW
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Cash is an asset that is currency from coins any currency on hand and
in checking account balances. Because cash is a non darning asset, first
usually attempt to keep their cash balances to the minimum level
required to sustain operations.

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Cash equivalents are the most liquid current assets. Money that can be
withdrawn form a regular bank account or money market account
qualifies as cash. Assets that can be quickly converted in to cash, such
as treasury bills any some short some short term municipal bonds are
cash equivalents. two general criteria for determining if a current asset
is a cash equivalent is if it matures in less than three months and if it
can be converted quickly.
Cash Management are important to business because they are the assets that are used to
fund day to day operations and pay ongoing expenses. (www.managment.com)
Cash Management are important because they indicate how much cash a company
essentially has access to within the next 12 months outside of third-party sources.
It is indicative of how the company funds its ongoing, day to day operations and how liquid
a firm is.
The ratio of current assets to current liabilities is particularly important in judging
liquidity.
Cash management: cash is one of the current assets of business it is needed to
keep the business going. A business concern should always keep sufficient cash
for meeting its obligation.
For some person cash means money in the form of currency or cash in hand for
other person cash both cash in hand cash in bank. In a company, there are
motives for managing cash.
1) Transaction motives
A company need cash formatting transaction in the day to day operation the cash
indeed to make purchase, pay expanse tax. In order to meet the business
obligations in such a situation it is necessary to maintain adequate cash balance
thus, the firm with the motive of meeting root line business payment keeps cash
balance.
 2) Synchronization of cash flow
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It requires the financial manager to first select a planning horizon over which
estimate the cash flows and cash out flows as they are expected to occur in
each of the sub period with in the horizon.
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The typical planning horizon for the cash management is one year with cash
of twelve month being the sub period.
3) Short cost
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Even with a carefully constructed cash budget the company should have
short fall in its cash need. The short all could be expected and management
made to cover the shortage impact the cash budget is designed to cover the
shortage.
4) Excess cash balance
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The most significant cost associated with managing cash is the opportunity
cost holding the cash.
 5) Speculative motive
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It related to handling for investing in profitable opportunities such
opportunities do not come in regular manner. Factors deterring the cash
balance.
 Statement of Problem
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Have neither excess nor deficient amounts of cash on hand at right
time:
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know how much cash is need as well as how much it has and where
that cash is at all time.
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know the amounts of fund available for investment and the length of
time that can be must.
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This was much of the extent of the problem in Khulsupermarket in
addition:
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cash management receive a priority for retailer institutions especially
supermarkets little is known how effectively monitor its cash flow,
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how to accelerate collection receipt and optimize timing of
disbursement, maximizing sales collection receipt and optimize timing
of supply, maximizing profit earning and proper investment.
 General Objectives

The general objective of the study focus on the cash management practices
of Khul Supermarket in Addis Ababa.
 Specific Objectives

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To identify the source of short-term finance in Khul supermarket.

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To assess the internal control of cash receipts and disbursement.

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To assess the Khul’s its cash budget.

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To identify and asses idle inventory its investment area.
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To compare theoretical aspect of cash management practice and inventory
within actual practice of Khul Supermarket.
 Significance of the Study
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This study will benefit supermarkets in Addis Ababa by identifying
factors that affect the internal control over cash, suggesting possible
recommendation and inventories control and gives insight on planning
and allocating resources.
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It also reflects the cash management practice of Khul supermarket
with its limitation and weakness and give possible communitive idea or
solution as to how the manager of the Khul supermarket should
control its cash and other assets under the proper management of
cash.
 Scope of the Study
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Here the researcher knows that the study includes supermarket’s cash
management practice,
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Time and financial constraints the researcher was forced to focus on
the assessment of cash management practices of Khul Supermarket.
After this study the community would expect to compare the cash
management practice of Khul Supermarket with theoretical aspect of
cash management and if there is cash management problem give
possible solution (advices) for markets in Addis Ababa.
Limitation of the Study

During the collection of data for this study purpose we have faced
different limitation, like voluntarist of the concerned people to give the
information and there was also a time constraint to do this study.
 METHOD
1.The Research Design

For this study Conclusive research design:Descriptive Research has been used. Because,
the aim of the study was to describe the actual cash management practice of Khul
supermarket.

2. Data Type and Source

For this study, we have been using triangulation quantitative and qualitative data type
especially the first one. we have also used both primary and secondary source of data. The
research has prepared structured interview for selected personal. Closed-ended
questionnaires were handed after we had a focus group session with the sample.
….METHOD
3. Method of Data Collection

For primary method of data collection on variables, direct observation and

statistical data had been active rather than other method of data collection
because in order to understand the real cash management practice need to
observe the activities. The secondary data was collected by reviewing the
company unpublished journals and research books.
 4.Sample Size and Sampling Technique
●
From a total population seven employees of Khul supermarket 3
employees were selected as ample size by using judgmental
sampling techniques-Because this
3 employees were especially engaged in the area of cash
management practice. Age, language background and
socioeconomic information, was said to be not relevant to the
study.
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cash per employee
 5. Data Analysis and Presentation
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After necessary data were collected from the primary
source and secondary sources the data would processing
and analyse data processing is an activity which involves
interpretation data to make the data appropriate for
analysis. Data analysis had been done both by using
triangulation (qualitative and quantitative data) processing
from the data get the data presenting would be descriptive
data presentation by using tables and others.
REFERENCE

I. M pandy (1999) financial management 7th edition

I.M pandy (2004) financial management 8th edition
S.M (1987) financial management and policy
N.Kumar and R. mittawa supermarket law and practice
Managing, importance and types of cash asset Goggle search.
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the crew.