managing working capital n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Managing Working Capital PowerPoint Presentation
Download Presentation
Managing Working Capital

Loading in 2 Seconds...

play fullscreen
1 / 18

Managing Working Capital - PowerPoint PPT Presentation


  • 156 Views
  • Uploaded on

Managing Working Capital. Cash. Why should a business hold cash?. How much cash to hold? It depends on…. Controlling the cash balance. There is no one “right” way to manage cash. But a simple model suggests having a target cash balance, as well as upper and lower limits on cash held.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Managing Working Capital' - arva


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
controlling the cash balance
Controlling the cash balance

There is no one “right” way to manage cash. But a simple model suggests having a target cash balance, as well as upper and lower limits on cash held.

Working capital balances (e.g. securities, inventories, A/R and A/P) would be adjusted to deal with too much or too little cash.

slide6

- C

+ A

+ B

= D

slide7

A

+

B

-

C

=

D

slide10

+ A

+ B

- C

= D

* The example assumes that receivables and payables stay constant throughout the year; and that ALL purchases and sales are on credit.

when a business allows a customer to buy on credit there are often 3 important time periods
When a business allows a customer to buy on credit, there are often 3 important time periods….