财务管理课件cha(2)PPT课件.pptVIP

Short-Term Financial PlanningChapter 160 Key Concepts and SkillsBe able to compute the operating and cash cycles and understand why they are importantUnderstand the different types of short-term financial policyUnderstand the essentials of short-term financial planning1 Chapter OutlineTracing Cash and Net Working CapitalThe Operating Cycle and the Cash CycleSome Aspects of Short-Term Financial PolicyThe Cash BudgetShort-Term BorrowingA Short-Term Financial Plan2 Sources and Uses of CashSources of CashObtaining financing:Increase in long-term debtIncrease in equityIncrease in current liabilitiesSelling assetsDecrease in current assetsDecrease in fixed assetsUses of CashPaying creditors or stockholdersDecrease in long-term debtDecrease in equityDecrease in current liabilitiesBuying assetsIncrease in current assetsIncrease in fixed assets3 The Operating CycleThe time it takes to receive inventory, sell it and collect on the receivables generated from the saleOperating cycle = inventory period + accounts receivable periodInventory period = time inventory sits on the shelfAccounts receivable period = time it takes to collect on receivables4 The Cash CycleThe time between payment for inventory and receipt from the sale of inventoryCash cycle = operating cycle – accounts payable periodAccounts payable period = time between receipt of inventory and payment for itThe cash cycle measures how long we need to finance inventory and receivables5 Table 16.16 Example InformationItemBeginningEndingAverageInventory200,000300,000250,000Accounts Receivable160,000200,000180,000Accounts Payable75,000100,00087,500Net Sales = $1,150,000 Cost of Goods Sold = $820,0007 Example - Operating CycleInventory Period = 365 / Inventory TurnoverInventory Turnover = COGS / Average inventoryIT = 820,000 / 250,000 = 3.28 timesInventory Period = 365 / 3.28 = 111 daysAccounts Receivable Period = 365 / Receivables TurnoverReceivables Turnover = Credit Sales / Average ARRT = 1,150,000 / 180,000 = 6.4 timesR