Cash Flow Planning MyWeb Remote Access现金流划myweb远程访问.pptVIP

Cash Flow Planning A billion here, a billion there - pretty soon it adds up to real money. Senator Everett Dirksen Whoever said money can’t buy happiness didn’t know where to shop. Unknown Financial Obstacles Sources of Uneven Cash Flow Seasonality of Business Length of Operating Cycle Lump-sum payments Seasonality Many businesses have seasonal sales Fantastic Catalogue Clear River Resort Cheaper to buy after peak But have to absorb negative cash flow Differences in Cash Flow Cycles Type of Business Comment Manufacturer Lengthy inv. cycle Wholesaler Inventory A/R Retailer Inventory; no A/R Prof. Service No inv.; A/R Same day serv. No significant amounts Reducing Inventory Inventory is serious drain on cash flow Not as readily financed as receivables Detailed inventory tracking system Reduce number of items carried Speed up shipping process Just-in-time with suppliers Days to Collect A/R Formalize credit-granting process Send bills out immediately Use bank lockbox for payments Send regular statements Follow-up notices of increasing pressure Use collection agencies Factor or borrow against receivables Payment of A/P Pay at latest date possible Take advantage of discounts Stay in contact with suppliers if late with payment Pay government before suppliers Government penalties are expensive, and they can close business Developing Income Projections Purposes Borrowing needs Tax planning Purchasing requirements Forecasting sales Key to income projection Usually based on prior year, adjusted for trends Sales Projection Example: E(99 4th Qtr) = 98 4th qtr. + (99 3rd qtr - 98 3rd qtr) Sales Projection Example Sales (000) Q1 Q2 Q3 Q4 1999 200 250 200 400 1998 230 275 240 ? Forecasting Expenses Variable costs Costs that vary in relation to sales (sales com