公司理财课件英文版.ppt

Short-Term Finance and Planning 26.1 Cash and Net Working Capital Current Assets are cash and other assets that are expected to be converted to cash within the year. Cash Marketable securities Accounts receivable Inventory Current Liabilities are obligations that are expected to require cash payment within the year. Accounts payable Accrued wages Taxes Balance Sheet Model of the Firm 26.2 Defining Cash in Terms of Other Elements Defining Cash in Terms of Other Elements An increase in long-term debt and or equity leads to an increase in cash—as does a decrease in fixed assets or a decrease in the non-cash components of net working capital. The sources and uses of cash follow from this reasoning. p522 26.3 The Operating Cycle and the Cash Cycle The Operating Cycle and the Cash Cycle In practice, the inventory period, the accounts receivable period, and the accounts payable period are measured by days in inventory, days in receivables, and days in payables. Example Inventory: Beginning = 200,000 Ending = 300,000 Accounts Receivable: Beginning = 160,000 Ending = 200,000 Accounts Payable: Beginning = 75,000 Ending = 100,000 Net sales = 1,150,000 Cost of Goods sold = 820,000 Inventory period Average inventory = (200,000+300,000)/2 = 250,000 Inventory turnover = 820,000 / 250,000 = 3.28 times Inventory period = 365 / 3.28 = 111.3 days Receivables period Average receivables = (160,000+200,000)/2 = 180,000 Receivables turnover = 1,150,000 / 180,000 = 6.39 times Receivables period = 365 / 6.39 = 57.1 days Operating cycle = 111.3 + 57.1 = 168.4 days Payables Period Average payables = (75,000+100,000)/2 = 87,500 Payables turnover = 820,000 / 87,500 = 9.37 times Payables period = 365 / 9.37 = 38.9 days Cash Cycle = 168.4 – 38.9 = 129.5 days We have to finance our inventory for 129.5 days. If we want to reduce our financing needs, we need to look carefully at our receivables and inventory periods – they both seem excessive. 26.4 Some Aspects of Short-Term Financial Policy There a