CURRENT ASSET MANAGEMENT

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How to Control your Cash Floiw

af Paul Burke

cash vs profit

af mark jenkins

The Business Strategy Game (BSG)

af Gabriel Garcia

Central topic

af Bill Dennehy

the test should be wheatear the level of return we are able to earn from this assets equals or exceeds the potential gain from other investments.

1. Credit standards 2. Terms of trade 3. Collection policy

Accounts Receivable as an Investment

Credit policy administration

raw materials, work in progress and finished goods.

divided into the three categories:

the factors influencing the choice are yield, maturity, minimum investment required, safety, and marketability.

system in which funds are moved between computer terminals without the use of a “check.”

Electronic Funds Transfer

arises from time delays in mailing, processing, and clearing checks through the banking system.

Extending Disbursements

Improving Collections

Float

- transactions balances - compensating balances for banks - precautionary needs.

relies on the payment pattern of customers and the efficiency of the banking system.

Cash Flow Cycle

Reasons for Holding Cash Balances

INVENTORY MANAGEMENT

MANAGEMENT OF ACCOUNTS RECEIVABLE

allows the company to time their payments so that they hold their cash balances as long as possible.

MARKETABLE SECURITIES

COLLECTIONS AND DISBURSEMENTS

CASH MANAGEMENT

CURRENT ASSET MANAGEMENT