FIN4320_Lecture_1_Role_of_Cash_Management(23p)

FIN4320_Lecture_1_Role_of_Cash_Management(23p) -...

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Introduction To Short-Term Cash Management
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Overall Corporate Objective Profits Cash Flows Maximize Shareholder Wealth Importance 40 to 50% of a firm’s total assets are current assets. Cash management creates value because cash flows are unsynchronized, uneven, and uncertain.
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Cash Management And The Operating Cycle Of A Business Cash Management Objectives Liquidity Cash Optimization Financing Risk Management Coordination
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The Operating Cycle And Cash Cycle Operating Cycle
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Cash Cycle Cash Flows Cash Inflows Concentration And Liquidity Management Flows Cash Outflows
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Cash Cycle
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Cash Flow Timeline Invoicing Float Payment Float Collection Float Payee’s View Disbursement Float Payor’s View
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Cash Flow Timeline Purchases Invoice Received Invoice Paid P a y m e n t A p p l i e d T o C u s t o m e r ’ s A c c o u n t Order and Invoice Preparation Credit Period Payment Application Invoicing Float Payment Float
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FIN4320_Lecture_1_Role_of_Cash_Management(23p) -...

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