Financial Issues

Financial Issues - 10-15-07: Part Three, 2. Financial...

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10-15-07: Part Three, 2. Financial Issues at the Firm Level: Funding Needs and Sources in the Short term and Long Term Function of finance managers and the importance of planning o Financial managers involved in Financial planning Financial control Cash flow management o Working capital management Managing current assets and current liabilities Called working capital because current continually flow o Current assets are short term resources Cash ST investments Accounts receivable Inventory o Manage current assets Manage cash: get it as quickly as possible, take tie paying it Investing idle cash: put $ somewhere so don’t lose it Maximize accounts receivable: pay in 10 days, get discount or pay in 6 months to treat really well, want customers to pay right away Optimizing inventory: want inventory to move and not sit there o Current liabilities are short term debts (pay right away to get discount/ pay at very end) Accounts payable
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Financial Issues - 10-15-07: Part Three, 2. Financial...

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