asdf - Key Concepts and Skills Be able to compute the...

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Key Concepts and Skills Be able to compute the operating and cash cycles and understand why they are important Understand the different types of short-term financial policy Understand the essentials of short-term financial planning Page 489 Sources of Cash: Obtaining financing Obtaining financing: Increase in long-term debt Increase in equity Increase in current liabilities Selling assets Decrease in current assets Decrease in fixed assets Uses of Cash: Paying creditors or stockholders Decrease in long-term debt Decrease in equity Decrease in current liabilities Buying assets Increase in current assets ____________________________ Stock + short term debt Cash - long term debt The Operating Cycle The time it takes to receive inventory, sell it, and collect on the receivables generated from the sale of the inventory Operating cycle = inventory period + accounts receivable period - Inventory period = time inventory sits on the shelf - Accounts receivable period = time it takes to collect on receivables
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asdf - Key Concepts and Skills Be able to compute the...

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