Khul Supermarket

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statement of problem

Management is responsible for controlling and protecting of the business


like inventory, receivables, plant assets and cash. Cash management is
one part of financial management system that focus on internal control
and forecasting the future cash requirement. (www.wikibusiness-
com.8:00pm).

Cash is the most important element for day today activity. By effective
cash management KHUL Mart can reduce the excess cash at optimum
level and ensure customers requirements. Cash management involves
neither excess not deficient amounts of cash on hand at right time
proper cash management requires that the business know how much
cash is need as well as how much it has and where that cash is at all
time. Cash management also require knowing the amounts of fund
available for investment and the length of time that can be must. n

KHUL Mart are increasing becoming innovative and anticipating the


needs of customers to wards wants, enterprise resources planning
integration, reconciliation, real time reporting, providing an end view as
cash management value chain besides offering the ability to reach and
bereached their own customers the mounting pressure from competition
forces the market to look an information technology vendor who offer
better solution and services in cash management (www. Hcltech. Com.
9:50 am at local).

Eventhough, cash management receive a priority for retailer institutions


especialy supermarkets little is know on how effectively monitor its cash
flow, 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.

There for this study tried to investigate a solution for the following basic
research questions.
 What are the source of short term financing used by Khul
supermarket.

 How the khul supermarket control cash receipt and gives advance .

 Does the supermarket have Idle cash.

 Does the supermarket have cash budget.

 Does the supermarket posses cash shortage.

Objective of Study

General Objectives

The general objective of the study focus on the cash management practices of
khul supermarket in Adiss Ababa.

Specific Objectives

In addition the above mentioned general objective the study has the
following specific objectives.

 To identify the source of short term finance in khul supermarket.

 To asses the internal control of cash receipts and disbursement.

 To asses the khul’s its cash budget.

 To identify and asses idle inventory its investment area.

 To compare theoretical aspect of cash management practice and


inventory with in actual practice of khul supermarket.

1.5 Significance of the Study


This study will benefit supermarkets in Addis Ababa by identifying
factors that affect the internal control over cash, suggesting possible
recommendation and inventories control. It also reflects the researcher
cash management practice of Khul supermarket with its limitation and
weakness and give possible commentive 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.

1.6 Scope of the Study

Here the researcher knows that the study includes the whole
supermarket cash management practice but time and financial
constraints the researcher forced to focus on the assessment of cash
management practices of Khul supermarket. After this study the
community would expected 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.

1.7 Limitation of the Study

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

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The Research Design


For this study descriptive design type of research, was going to be used.

Because, the aim of the study was to describe the actual cash management
practice of Khul supermarket.

Data Type and Source

For this study, we have was used both quantitative and qualitative data type
especially the later one. we have also use both primary and secondary source
of data.

Method of Data Collection

For primary method of data collection observation and unstructured interview


would been used rather than other method of data collection because inorder
to understand the real cash management practice need to observe the
activities. The secondary data was collected by reviewing the company
unpublished journals and reports.

Sample Size and Sampling Technique.

From a total population five employees of Khul superm 6 employees were


selected as ample size by using judgmental sampling techniques-Because this
6 employees were especially engaged in the area of cash management practice.

Data Analysis and Presentation

After necessary data were collected from the primary source and secondary
sources the data would processing and analyze data processing is an activity
which involves interpretation data to make the data appropriate for analysis.
Data analysis would be done both by using qualitative and quantitative data
processing from the data get the data presenting would be descriptive data
presentation by using tables and others.

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