The document discusses cash management, receivables management, and inventory management. It outlines the objectives, strategies, and factors to consider for cash management including holding cash, cash budgeting, and cash flow. It also discusses credit policies, credit analysis, credit terms, and collection policies for receivables management. Finally, it mentions the objectives and costs/benefits considerations for inventory management.

1. Cash Receivables Inventory mgmt

2. Cash- is the ready currency to which all liquid assets can be reduced Marketable securities- r short term interest earning money mkt instruments used by firms to obtain a return on temporarily idle funds CASH MGMT

3. Motives for holding cash Transaction motive Precautionary motive Speculative motive Compensating motive

4. Objectives of cash mgmt Meeting payments schedule Minimizing funds committed to cash balance

5. Factors determining cash needs Synchronization of cash flow Short costs Excess cash balance costs Procurement & mgmt Uncertainty

6. Cash budget A statement of inflow & outflow of cash i.e. used to estimate its short term requirements Purposes To coordinate timings of cash needs To take benefit on a/c payable To finance capital expansion To smoothen the production schedule

7. Elements of cash budget Selection of time frame Identifying operating & financial cash flow Preparing statement

8. Cash mgmt: basic strategies Identifying cash cycle Maximizing cash turnover Minimum operating cash Stretching accounts payable Efficient inventory mgmt Speeding collection of a/c rec Combined cash mgmt strategies

9. Is also called as trade credit mgmt Cost related r; Collection cost Capital cost Delinquency cost Default cost RECEIVABLE MGMT

10. Credit policy Includes Credit standards Credit analysis

11. Credit stds Tight/ restrictive std Liberal/ non restrictive std Trade-off with respect to credit std Collection cost Investment in rec Bad debt expenses Sales volume

12. Credit analysis Obtaining credit information Internal source External source Analyses of credit information Quantitative Qualitative

13. Credit terms it specifies terms & conditions under which goods r sold It includes; Credit period Cash discount Cash discount period

14. Collection policies Procedure followed to collect a/c rec Includes; Degree of collection effort Strict or liberal Type of collection effort letters, reminders, telephone calls etc

15. Inventory mgmt Objectives To minimize investments in inventory To meet demand for the product by efficiently organizing production & sales operations

16. Costs of holding inventory Ordering cost Carrying cost

17. Benefits of holding inventory In purchasing In production In wip In sales