| A.
R. Kakhsaz Company
an accountancy corporation
Member
American Institute of
Certified Public Accountants
International associates:
Tavana & Co.
Chartered Accountants
Toronto, Canada
Tel.416-229-2221
|
• Huge cash hoard of U.S. firms:
For a clue to Corporate America's
state of mind, look no further than
the piles of money stashed under
it's mattress. Facing an uncertain
economic environment, U.S. firms
have socked away cash at a rapid
clip, amassing a rainy-day fund the
likes of which hasn't been seen in
over 40 years. At the end of March,
non-financial firms had
accumulated a record $1.84 trillion
in cash and other liquid assets.
As a percentage of total company
assets, which include factories
and other investments, cash is at
its highest level since the early
1960s. When and where
companies decide to use their
stockpile will be a key factor in the
strength of the recovery. If
companies feel confident enough
to invest in new equipment or
make acquisitions, it will spur
economic activity and hiring. If they
remain anxious, such decisions
will be delayed, dampening overall
growth.
• A study of 40,000 older
women found that those who
followed a low-fat diet for eight
years cut their risk of ovarian
cancer by 40%.
• Seller financing is making a
comeback: Because many
would-be home buyers are finding
it difficult to get mortgages from
traditional sources, some are
working with sellers to buy homes
directly--with no bank involved.
This can work if the seller can
afford it and if the buyer comes up
with enough cash to convince the
seller that he/she is a good
risk--typically at least 10% of the
purchase price. Private sellers
often charge higher interest than
banks do because they finance
riskier borrowers. What to do? If
you are considering this option for
buying or selling a home, get good
legal and financial advice as the
process can get complicated.
•
For more of the Generalist,
please visit ARKCPA•COM.
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• theGeneralist, a
one-page monthly
publication of the accounting firm of
A.R. Kakhsaz Company, is in its 16th
year of providing information, presented
fairly and accurately, from sources we
can depend upon and trust.
• President Taft was a large
man. He was six feet two inches
tall and weighing in at about 332
pounds at the height of his
presidency. After becoming stuck
in the White House bath tub,
where it took six men to help him
out, he ordered a tub specially
made for him. Needing a big
bathtub, he had a tub installed that
was 7 feet long and 41 inches
wide, and could accommodate
four normal-sized men.
Although Taft was the most portly
president, he was considered a
good dancer, a good tennis player
and an average golfer.
• The economic recovery
is moving more slowly than after
other recessions despite a
corporate earnings rebound and
factory surge. U.S. households
have pared back their spending,
however, and are expected to keep
a tight grip on their wallets after
years of going overboard on
credit. The trend is expected to
continue, drawing out the recovery
process even further.
• Zip code: Ever wonder what
the numbers mean in your zip
code? Well, ZIP stands for Zoning
Improvement Plan, introduced by
the U.S. Postal Service in 1963, to
make mail sorting and delivery
quicker and more efficient. The
first digit represent a group of
states, the second and third digits
represent a large city or area in the
state, and the fourth and fifth digits
are for addresses within that area.
Most countries in the world use a
five-digit postal code.
• We see more in numbers
than just numbers…
Ali R. Kakhsaz, CPA, MAcc
www.arkcpa.com
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