AEM1200-0207 (2)

Assets salaries payable supplies taxes cash sales

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Unformatted text preview: ries Payable Supplies Taxes Cash Sales Investment Income Sources of Funds Sources Short Term Trade Credit Promissory Notes Family/Friends Banks, etc. Secured Loan Unsecured Loan Factoring Commercial Paper Long Term Debt Term-Loan Bonds Secured Unsecured Equity Stock Venture Capital and Venture Private Equity Private Retained Earnings Dealing with a “Cash Crunch” Dealing Current Assets Factor accounts receivable; Factor accounts Sell inventory at a price well Sell inventory below market. below Long-term liabilities Secured Unsecured Current Liabilities Increase your accounts Increase payable through the use of payable trade credit; trade Take short term debt Promissory Notes Family/Friends Banks, etc. Secured Loan Unsecured Loan Commercial Paper Term-Loan Bonds Equity Stock Venture Capital and Venture Private Equity Private Retained Earnings Improve the Flow Minimize accounts receivable Reduce the raw material and finished products inventory Control your spending Delay your accounts payable Sources of Long Term Finance Sources Long Term Debt Secured or unsecured Banks or other institutions Financial markets – Bonds New Equity Preferred or common equity Special case: Venture Capital Retained earnings Long – Term Financing: Examples Long In 2008 Boston Beer (makers of Sam Adams) In bought and renovated a brewery outside Philadelphia for $100 million, using cash obtained from accumulated earnings; obtained In Feb. 2012 Kimberly-Clark issued $300 million In in 10-year bond...
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