Cash management techniques, Finance Basics

Assignment Help:

Cash Management Techniques

The basic strategies that must be employed via the business firm in managing its cash are as:

i) To pay account payables as behind as possible with no damaging the firm's credit rating.  However the firm should obtain advantage of any favorable cash discounts offered.

ii) Turnover inventory as rapidly as possible, but avoid stock outs that might result in loss of sales or shutting down such 'production line'.

iii) Collect accounts obtainable as quickly as possible with no losing future sales since of high pressure collection systems. The firm may employ cash discounts to accomplish this objective.


Related Discussions:- Cash management techniques

Tax differential theory, Tax Differential Theory Advanced via Lichtenb...

Tax Differential Theory Advanced via Lichtenberger and Ramaswamy in 1979.They argued that tax rate on dividends is higher quite than tax rate on capital gains. Thus, a firm th

Money market mutual funds (), why i cant found date for mmmfs like total as...

why i cant found date for mmmfs like total asset or number of share or return ???? i search alot and i found words instead of number

Importance of interest rates, Importance of Interest Rates These are o...

Importance of Interest Rates These are of a specifically relevance to a finance manager since: i) They measure the cost of borrowing. ii) Interest rates in a country influen

C.O.L.A., What are some good examples of C.O.L.A?

What are some good examples of C.O.L.A?

Characteristics of sole proprietorship, Characteristics of sole proprietors...

Characteristics of sole proprietorship The main characteristics of sole proprietorships are as follows: 1) Ownership- The ownership of the business unit is by one person.

Net Income Problem:, A firm has the following accounts: What is the net inc...

A firm has the following accounts: What is the net income for the period? Net patient revenue = $1,500,000 Supply expense = $200,000 Depreciation expense = $100,000 Salaries and b

APR, Determine how much of a total loan payment applies towards principal a...

Determine how much of a total loan payment applies towards principal and how much applies towards interest for a home mortgage of $177,219 with a fixed APR of 7.5% of 20 years

Prepare comparative income statement, From the following cost, production a...

From the following cost, production and sales data of Decors Motor Ltd., prepare comparative income statement for three years under (i) absorption costing method, and (ii) marginal

Explain about commercial banks in depository institutions, Explain about co...

Explain about commercial banks in depository institutions. Commercial banks: Commercial banks accept deposits or liabilities to create loans or assets and to buy governme

Specific cost, I need a report on Specific Cost. Can you please assist me f...

I need a report on Specific Cost. Can you please assist me for Specific Cost report for about 2500 words?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd