chap019公司理财_课件.pdf

Chapter 20 Fundamentals of Corporate Working Capital Finance Management Fifth Edition Slides by Matthew Will McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved 20- 2 Topics Covered Accounts Receivable and Credit Policy Credit Agreements Inventory Management Cash Management Investing Idle Cash: The Money Market McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved 20- 3 A/R and Credit Policy Credit Management Steps Establish terms of sale What form of IOU will you require? Perform a credit analysis Create a credit policy Develop a collection policy McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved 20- 4 Terms of Sale Terms of Sale - Credit, discount, and payment terms offered on a sale. Example - 5/10 net 30 5 - percent discount for early payment 10 - number of days that the discount is available net 30 - number of days before payment is due McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved 20- 5 Terms of Sale A firm that buys on credit is in effect borrowing from its supplier. It saves cash today but will have to pay later. This, of course, is an implicit loan from the supplier. We can calculate the implicit cost of this loan Effective annual rate 365 / extra days credit = 1 + discou