Unit 4 RM1.ppt
•Download as PPT, PDF•
0 likes•3 views
This document discusses receivables management and trade credit policies. It covers the costs and benefits of extending credit to customers, goals of credit policies, key aspects of credit analysis for customers, and components of credit terms and collection policies. The goals are to maximize sales while balancing credit risks and costs of extending payment terms to customers.
Report
Share
Report
Share
Recommended
Management of receivables
This document summarizes key aspects of managing receivables, including:
1) Defining receivables as unpaid amounts from credit sales and outlining objectives like collecting accounts receivable.
2) Explaining reasons companies offer credit like promoting sales and factors affecting credit policies like collection costs.
3) Describing steps in determining credit policies including evaluating customers' character, capital, and repayment ability.
4) Outlining collection policies for overdue accounts involving escalating efforts like phone calls, visits, and legal action if needed.
Receivables management
- The document discusses receivables management. Receivables refer to amounts owed by customers from credit sales.
- The objectives of receivables management include optimizing investment in receivables, balancing credit sales and investment, maximizing firm value, and achieving a trade-off between risk and return.
- Costs associated with receivables include opportunity costs, collection costs, delinquency costs, and default costs. Firms must choose an optimal credit policy that balances liberal policies which increase sales versus stringent policies which reduce risks.
Unit 4 Reveivables Management.pptx
Receivable management involves developing credit policies that balance costs and benefits. It includes setting credit standards, terms, and collection procedures. The costs of receivables include financing, administrative, delinquency, and default costs. The benefits include increased sales and profits. Credit evaluation assesses customer creditworthiness based on their character, capacity, and conditions. Factoring involves the sale of receivables to a factor who provides credit protection and administration in exchange for fees and interest. It offers firms financing and specialized receivables management.
Credit and Collection Policy.pdf
The document discusses credit and collection policies. It provides an overview of what a credit and collection policy is, who is responsible for creating it, and how to develop one. It notes that the policy should include guidelines for credit terms, customer qualification criteria, collection procedures, and steps for customer delinquency. It also discusses the importance of having a policy to ensure timely payment, minimize bad debt, protect customer relationships, and improve efficiency. The document then provides a sample outline for a credit policy, including sections on the credit department mission, goals, roles and responsibilities, procedures, and metrics for measuring results.
Defining optimum credit policy1
One of the major issues in the company is the controlling of the collection period and developing optimum credit policy that minimizing the company loses, i.e how to trade off and balance between two costs, the first is carrying costs and the second is the opportunity costs of a particular credit policy. In other wards to define the point where the total credit cost is minimized.
Receivable management and Factoring (By BU AIS 2nd Batch)
This presentation discusses receivables management and factoring. It begins with an introduction of the presentation team and defines receivables as debts or monetary obligations owed to a company by its customers. It then covers understanding and characteristics of receivables, as well as the objectives, importance and scope of receivables management. The presentation also discusses credit policies, credit evaluation, aging schedules, and factoring - including the services provided by factors and how factoring differs from bill discounting. The overall purpose is to provide an overview of key concepts relating to receivables management and factoring.
Meeting 5 - Receivables management (Financial Management)
The document discusses various aspects of receivables management including accounts receivable, credit policies, receivable control methods like DSO, aging schedules, and payment patterns. It covers establishing credit standards and terms, monitoring accounts receivable aging, and analyzing payment patterns to evaluate credit policy effectiveness and forecast working capital needs.
Cima presentation pg
Steve Solomon presents options for finding capital in difficult times. He discusses analyzing cash flow, improving collection of debts, managing inventory and expenses. Financial tools available include overdrafts, loans, invoice discounting, asset financing and equity options. Understanding cash flow cycles and having a strategy is key to navigating hard times.
Recommended
Management of receivables
This document summarizes key aspects of managing receivables, including:
1) Defining receivables as unpaid amounts from credit sales and outlining objectives like collecting accounts receivable.
2) Explaining reasons companies offer credit like promoting sales and factors affecting credit policies like collection costs.
3) Describing steps in determining credit policies including evaluating customers' character, capital, and repayment ability.
4) Outlining collection policies for overdue accounts involving escalating efforts like phone calls, visits, and legal action if needed.
Receivables management
- The document discusses receivables management. Receivables refer to amounts owed by customers from credit sales.
- The objectives of receivables management include optimizing investment in receivables, balancing credit sales and investment, maximizing firm value, and achieving a trade-off between risk and return.
- Costs associated with receivables include opportunity costs, collection costs, delinquency costs, and default costs. Firms must choose an optimal credit policy that balances liberal policies which increase sales versus stringent policies which reduce risks.
Unit 4 Reveivables Management.pptx
Receivable management involves developing credit policies that balance costs and benefits. It includes setting credit standards, terms, and collection procedures. The costs of receivables include financing, administrative, delinquency, and default costs. The benefits include increased sales and profits. Credit evaluation assesses customer creditworthiness based on their character, capacity, and conditions. Factoring involves the sale of receivables to a factor who provides credit protection and administration in exchange for fees and interest. It offers firms financing and specialized receivables management.
Credit and Collection Policy.pdf
The document discusses credit and collection policies. It provides an overview of what a credit and collection policy is, who is responsible for creating it, and how to develop one. It notes that the policy should include guidelines for credit terms, customer qualification criteria, collection procedures, and steps for customer delinquency. It also discusses the importance of having a policy to ensure timely payment, minimize bad debt, protect customer relationships, and improve efficiency. The document then provides a sample outline for a credit policy, including sections on the credit department mission, goals, roles and responsibilities, procedures, and metrics for measuring results.
Defining optimum credit policy1
One of the major issues in the company is the controlling of the collection period and developing optimum credit policy that minimizing the company loses, i.e how to trade off and balance between two costs, the first is carrying costs and the second is the opportunity costs of a particular credit policy. In other wards to define the point where the total credit cost is minimized.
Receivable management and Factoring (By BU AIS 2nd Batch)
This presentation discusses receivables management and factoring. It begins with an introduction of the presentation team and defines receivables as debts or monetary obligations owed to a company by its customers. It then covers understanding and characteristics of receivables, as well as the objectives, importance and scope of receivables management. The presentation also discusses credit policies, credit evaluation, aging schedules, and factoring - including the services provided by factors and how factoring differs from bill discounting. The overall purpose is to provide an overview of key concepts relating to receivables management and factoring.
Meeting 5 - Receivables management (Financial Management)
The document discusses various aspects of receivables management including accounts receivable, credit policies, receivable control methods like DSO, aging schedules, and payment patterns. It covers establishing credit standards and terms, monitoring accounts receivable aging, and analyzing payment patterns to evaluate credit policy effectiveness and forecast working capital needs.
Cima presentation pg
Steve Solomon presents options for finding capital in difficult times. He discusses analyzing cash flow, improving collection of debts, managing inventory and expenses. Financial tools available include overdrafts, loans, invoice discounting, asset financing and equity options. Understanding cash flow cycles and having a strategy is key to navigating hard times.
AR MGT control systems lec. notes.pdf
This document discusses accounts receivable management and credit policies. It covers terms of sale, credit analysis, collection policies, credit instruments, finding implied interest rates, determining creditworthiness, credit monitoring, and collection efforts. Specifically, it discusses basic credit terms of 2/10 net 45, collecting credit information like financial statements and payment history, calculating credit scores, monitoring average collection period and aging accounts receivable, and steps in collection efforts like delinquency letters, phone calls, collection agencies, and legal action.
Chapter 5: Working Capital Management
This document discusses working capital and revenue cycle management for healthcare organizations. It defines working capital and outlines strategies for managing assets and financing working capital needs. The revenue cycle is described, including methods to monitor performance and forecast cash flows. Accounts receivable management and collecting cash payments are also addressed.
379677571 unit-iii-receivables-management-concept-of-credit-policy-ppt
This document discusses receivables management and credit policies. It defines receivables as debts owed by customers from credit sales. Managing receivables involves granting credit, analyzing costs and risks associated with credit, and setting credit terms and collection policies. The key steps in receivables management are credit analysis of customers, establishing credit standards and terms, monitoring receivables, and following collection procedures. Credit analysis involves obtaining financial and reference information on customers and evaluating their creditworthiness.
Corporate Credit Policy
This Presentation Contains details of Credit Policy, Nature, Objective, Goals of Credit Policy, Credit Policy Variables, Collection Policies and Procedures, Collection Responsibility & Customer Rating System.
SAP - Business process Automation - Accounts Receivable
Automate SAP Accounts receivable (AR) processes:
Customer Analysis
Credit Management
Data Integration (CM- FSCM)
Cash allocation
Financial Management : Receivables Management
Receivables Management is the process of making decisions relating to an investment in
trade debtors. Certainly investment in receivables is
necessary to increase the sales and the profits of the firm.
But at the same time investment in this asset involves cost
consideration also
Financial Management Presentation on topic Receivables Management by MBA Students of the University of Hyderabad.
Madhuri 18MBMB03
Vinodh 18MBMB09
K.Priya Bharathi 18MBMB15
Isaac Livingston 18MBMB21
Bhargav 18MBMB29
C7
This document discusses short-term financial planning and working capital management. It covers key topics such as:
1) Definitions of working capital, current assets, current liabilities, and the risk-return tradeoff of short-term financing options.
2) The hedging principle of matching temporary assets with temporary financing and permanent assets with permanent financing.
3) Tools for managing working capital like cash conversion cycle, operating cycle, and cash cycle calculations and analysis.
4) Short-term financial policies regarding flexibility of current asset investment levels and sources of current asset financing.
Credit Risk Management
This document discusses various aspects of credit risk management. It defines different types of credit like trade credit, export credit, and consumer credit. It describes the roles and responsibilities of a credit manager in evaluating risk, monitoring performance, and collecting payments. It also provides details on credit evaluation processes, credit policies, credit limits, and methods to control and mitigate credit risk.
Management of Receivables and Payables
This document discusses the management of receivables. It begins by defining receivables as debts owed by customers who have purchased goods on credit but not yet paid. It then discusses the objectives and costs associated with receivables, as well as the benefits. Factors affecting the size of receivables and the importance of having a credit policy to manage receivables are also covered. The document also briefly discusses the management of payables.
Receivables management by Aakash Tiwari
Receivables, also known as accounts receivable, refer to money owed by customers who have purchased goods or services on credit. Effective receivables management aims to determine credit policies that maximize sales revenue while minimizing costs associated with extending credit, such as collection costs, capital costs, delinquency costs, and default costs. The document discusses key aspects of receivables management including evaluating customer creditworthiness, setting appropriate credit terms, and balancing the costs and benefits of maintaining receivables.
Ch10
The document discusses various topics related to accounts receivable and inventory management. It provides examples of how relaxing credit standards or credit terms like payment periods and introducing cash discounts can impact a firm's profitability. The key trade-off is between the potential for increased sales versus the higher costs of carrying more receivables. It also examines how adjusting collection policies and analyzing credit applicants can help firms manage default risk and bad debt losses.
AR management
This document discusses accounts receivable management and credit policies. It defines accounts receivable as sales made on credit. Establishing the right credit policy is important because it affects sales, working capital requirements, and bad debt losses. The document outlines key considerations for determining a credit policy, including credit terms, standards, discounts and collection procedures. It also discusses the trade-offs involved, such as higher sales versus increased costs of financing, collection and potential bad debts. Effective management of accounts receivable and prudent credit policies can help optimize current assets and cash flow.
Management of recievables
This document discusses the management of receivables. It defines receivables as money owed to a firm from customers for goods and services sold on credit. It discusses the costs associated with maintaining receivables, such as financing costs, collection costs, and bad debts. It also outlines factors that influence the size of receivables, like credit policies, terms of trade, and customer payment habits. The document then covers forecasting receivables and the key dimensions of managing receivables, including credit policies, executing collections, and financing receivables through factoring. Factoring is defined as the selling of accounts receivable to a third party for cash, providing financing and credit protection benefits.
Receivables management
This document discusses receivables management. It defines receivables as money owed to a firm by customers from sales. Effective receivables management optimizes profits by balancing investment in receivables with sales levels and costs of maintaining receivables like capital costs and collection costs. Firms must determine appropriate credit policies including credit terms, credit limits, and collection efforts to maximize returns while minimizing bad debts and collection period. Tools like credit analysis, aging schedules, and ratio analysis help firms monitor receivables and collection performance.
Managing debtors
This document discusses managing credit and debt collection for businesses. It covers setting appropriate payment terms, analyzing credit risk, making credit decisions, and collection policies. Statistical techniques like credit scoring and multiple discriminant analysis can help determine customer credit risk. The key considerations for businesses include balancing increased sales from offering credit with costs of potential bad debts and reduced cash flow. Factoring is also presented as an option to speed up cash flow from sales.
Unit ii marketing-investment_(marketing_finance)[1]
Trade credit arises when a firm sells products or services on credit and does not receive immediate cash payment. This creates accounts receivable that the firm expects to collect in the near future. Maintaining receivables involves costs such as capital costs from blocked financial resources, administrative costs for maintaining records, and collection costs. However, it also provides benefits like increased sales from offering credit and higher profits. Key factors that affect the size of receivables include sales levels, credit policies, terms of trade like credit periods and cash discounts. Firms must carefully manage receivables to limit risks and costs while maximizing benefits.
Wcm assets & laiblities @ppt doms
The document discusses working capital management and focuses on current assets like cash, accounts receivable, and inventory as well as current liabilities. It covers topics like determining the optimal cash balance, managing accounts receivable through credit policies and collection, different approaches to inventory management, and sources of short-term financing including trade credit. The overall goal is to understand how firms make decisions around current assets and liabilities to balance liquidity and return.
Nz workshop2017
* Practice A has an operating margin of 4% on $3 million in net sales.
* 4% of $3 million is 0.04 * $3,000,000 = $120,000
* Practice B has an operating margin of 8% on the same $3 million in net sales.
* 8% of $3 million is 0.08 * $3,000,000 = $240,000
* Therefore, Practice B has a higher EBITDA and would be valued higher based on the operating income method.
Topic 6 Curren Asset Management
The document discusses key concepts in managing cash and credit for a business. It covers reasons for holding cash, understanding float, cash collection and disbursement techniques, investing idle cash, and analyzing credit policies and receivables. Inventory management techniques like ABC analysis and the economic order quantity model are also summarized. The document provides examples to illustrate calculating float, accelerating cash collections, evaluating changes to credit policies, and determining optimal inventory levels.
Working capital management 4
The document discusses working capital management of receivables. It states that firms offer credit to customers to boost sales, tying up funds in receivables. The objectives of receivables management are to optimize returns on this investment. It involves determining credit policies like credit standards, terms and collection efforts to balance sales and costs of carrying debtors. Techniques discussed include credit analysis, controlling receivables, financing options like pledging and factoring receivables, and tools like reengineering receivables processes, technology, credit scoring and collection policies.
Zero lecture.ppt
This document provides details about the FIN353 Working Capital Management course. The course is for 4 credits and consists of 3 lectures and 1 tutorial per week. It will cover key topics related to working capital management including operating cycles, financing working capital, ratio analysis, receivables management, cash management, and inventory management. The course outcomes are to understand the importance of effective working capital management, interpret different working capital policies and their impact, and design appropriate working capital management policies.
More Related Content
Similar to Unit 4 RM1.ppt
AR MGT control systems lec. notes.pdf
This document discusses accounts receivable management and credit policies. It covers terms of sale, credit analysis, collection policies, credit instruments, finding implied interest rates, determining creditworthiness, credit monitoring, and collection efforts. Specifically, it discusses basic credit terms of 2/10 net 45, collecting credit information like financial statements and payment history, calculating credit scores, monitoring average collection period and aging accounts receivable, and steps in collection efforts like delinquency letters, phone calls, collection agencies, and legal action.
Chapter 5: Working Capital Management
This document discusses working capital and revenue cycle management for healthcare organizations. It defines working capital and outlines strategies for managing assets and financing working capital needs. The revenue cycle is described, including methods to monitor performance and forecast cash flows. Accounts receivable management and collecting cash payments are also addressed.
379677571 unit-iii-receivables-management-concept-of-credit-policy-ppt
This document discusses receivables management and credit policies. It defines receivables as debts owed by customers from credit sales. Managing receivables involves granting credit, analyzing costs and risks associated with credit, and setting credit terms and collection policies. The key steps in receivables management are credit analysis of customers, establishing credit standards and terms, monitoring receivables, and following collection procedures. Credit analysis involves obtaining financial and reference information on customers and evaluating their creditworthiness.
Corporate Credit Policy
This Presentation Contains details of Credit Policy, Nature, Objective, Goals of Credit Policy, Credit Policy Variables, Collection Policies and Procedures, Collection Responsibility & Customer Rating System.
SAP - Business process Automation - Accounts Receivable
Automate SAP Accounts receivable (AR) processes:
Customer Analysis
Credit Management
Data Integration (CM- FSCM)
Cash allocation
Financial Management : Receivables Management
Receivables Management is the process of making decisions relating to an investment in
trade debtors. Certainly investment in receivables is
necessary to increase the sales and the profits of the firm.
But at the same time investment in this asset involves cost
consideration also
Financial Management Presentation on topic Receivables Management by MBA Students of the University of Hyderabad.
Madhuri 18MBMB03
Vinodh 18MBMB09
K.Priya Bharathi 18MBMB15
Isaac Livingston 18MBMB21
Bhargav 18MBMB29
C7
This document discusses short-term financial planning and working capital management. It covers key topics such as:
1) Definitions of working capital, current assets, current liabilities, and the risk-return tradeoff of short-term financing options.
2) The hedging principle of matching temporary assets with temporary financing and permanent assets with permanent financing.
3) Tools for managing working capital like cash conversion cycle, operating cycle, and cash cycle calculations and analysis.
4) Short-term financial policies regarding flexibility of current asset investment levels and sources of current asset financing.
Credit Risk Management
This document discusses various aspects of credit risk management. It defines different types of credit like trade credit, export credit, and consumer credit. It describes the roles and responsibilities of a credit manager in evaluating risk, monitoring performance, and collecting payments. It also provides details on credit evaluation processes, credit policies, credit limits, and methods to control and mitigate credit risk.
Management of Receivables and Payables
This document discusses the management of receivables. It begins by defining receivables as debts owed by customers who have purchased goods on credit but not yet paid. It then discusses the objectives and costs associated with receivables, as well as the benefits. Factors affecting the size of receivables and the importance of having a credit policy to manage receivables are also covered. The document also briefly discusses the management of payables.
Receivables management by Aakash Tiwari
Receivables, also known as accounts receivable, refer to money owed by customers who have purchased goods or services on credit. Effective receivables management aims to determine credit policies that maximize sales revenue while minimizing costs associated with extending credit, such as collection costs, capital costs, delinquency costs, and default costs. The document discusses key aspects of receivables management including evaluating customer creditworthiness, setting appropriate credit terms, and balancing the costs and benefits of maintaining receivables.
Ch10
The document discusses various topics related to accounts receivable and inventory management. It provides examples of how relaxing credit standards or credit terms like payment periods and introducing cash discounts can impact a firm's profitability. The key trade-off is between the potential for increased sales versus the higher costs of carrying more receivables. It also examines how adjusting collection policies and analyzing credit applicants can help firms manage default risk and bad debt losses.
AR management
This document discusses accounts receivable management and credit policies. It defines accounts receivable as sales made on credit. Establishing the right credit policy is important because it affects sales, working capital requirements, and bad debt losses. The document outlines key considerations for determining a credit policy, including credit terms, standards, discounts and collection procedures. It also discusses the trade-offs involved, such as higher sales versus increased costs of financing, collection and potential bad debts. Effective management of accounts receivable and prudent credit policies can help optimize current assets and cash flow.
Management of recievables
This document discusses the management of receivables. It defines receivables as money owed to a firm from customers for goods and services sold on credit. It discusses the costs associated with maintaining receivables, such as financing costs, collection costs, and bad debts. It also outlines factors that influence the size of receivables, like credit policies, terms of trade, and customer payment habits. The document then covers forecasting receivables and the key dimensions of managing receivables, including credit policies, executing collections, and financing receivables through factoring. Factoring is defined as the selling of accounts receivable to a third party for cash, providing financing and credit protection benefits.
Receivables management
This document discusses receivables management. It defines receivables as money owed to a firm by customers from sales. Effective receivables management optimizes profits by balancing investment in receivables with sales levels and costs of maintaining receivables like capital costs and collection costs. Firms must determine appropriate credit policies including credit terms, credit limits, and collection efforts to maximize returns while minimizing bad debts and collection period. Tools like credit analysis, aging schedules, and ratio analysis help firms monitor receivables and collection performance.
Managing debtors
This document discusses managing credit and debt collection for businesses. It covers setting appropriate payment terms, analyzing credit risk, making credit decisions, and collection policies. Statistical techniques like credit scoring and multiple discriminant analysis can help determine customer credit risk. The key considerations for businesses include balancing increased sales from offering credit with costs of potential bad debts and reduced cash flow. Factoring is also presented as an option to speed up cash flow from sales.
Unit ii marketing-investment_(marketing_finance)[1]
Trade credit arises when a firm sells products or services on credit and does not receive immediate cash payment. This creates accounts receivable that the firm expects to collect in the near future. Maintaining receivables involves costs such as capital costs from blocked financial resources, administrative costs for maintaining records, and collection costs. However, it also provides benefits like increased sales from offering credit and higher profits. Key factors that affect the size of receivables include sales levels, credit policies, terms of trade like credit periods and cash discounts. Firms must carefully manage receivables to limit risks and costs while maximizing benefits.
Wcm assets & laiblities @ppt doms
The document discusses working capital management and focuses on current assets like cash, accounts receivable, and inventory as well as current liabilities. It covers topics like determining the optimal cash balance, managing accounts receivable through credit policies and collection, different approaches to inventory management, and sources of short-term financing including trade credit. The overall goal is to understand how firms make decisions around current assets and liabilities to balance liquidity and return.
Nz workshop2017
* Practice A has an operating margin of 4% on $3 million in net sales.
* 4% of $3 million is 0.04 * $3,000,000 = $120,000
* Practice B has an operating margin of 8% on the same $3 million in net sales.
* 8% of $3 million is 0.08 * $3,000,000 = $240,000
* Therefore, Practice B has a higher EBITDA and would be valued higher based on the operating income method.
Topic 6 Curren Asset Management
The document discusses key concepts in managing cash and credit for a business. It covers reasons for holding cash, understanding float, cash collection and disbursement techniques, investing idle cash, and analyzing credit policies and receivables. Inventory management techniques like ABC analysis and the economic order quantity model are also summarized. The document provides examples to illustrate calculating float, accelerating cash collections, evaluating changes to credit policies, and determining optimal inventory levels.
Working capital management 4
The document discusses working capital management of receivables. It states that firms offer credit to customers to boost sales, tying up funds in receivables. The objectives of receivables management are to optimize returns on this investment. It involves determining credit policies like credit standards, terms and collection efforts to balance sales and costs of carrying debtors. Techniques discussed include credit analysis, controlling receivables, financing options like pledging and factoring receivables, and tools like reengineering receivables processes, technology, credit scoring and collection policies.
Similar to Unit 4 RM1.ppt (20)
379677571 unit-iii-receivables-management-concept-of-credit-policy-ppt
379677571 unit-iii-receivables-management-concept-of-credit-policy-ppt
SAP - Business process Automation - Accounts Receivable
SAP - Business process Automation - Accounts Receivable
Unit ii marketing-investment_(marketing_finance)[1]
Unit ii marketing-investment_(marketing_finance)[1]
More from AnshikaMaheshwari10
Zero lecture.ppt
This document provides details about the FIN353 Working Capital Management course. The course is for 4 credits and consists of 3 lectures and 1 tutorial per week. It will cover key topics related to working capital management including operating cycles, financing working capital, ratio analysis, receivables management, cash management, and inventory management. The course outcomes are to understand the importance of effective working capital management, interpret different working capital policies and their impact, and design appropriate working capital management policies.
Unit 1.ppt
This document discusses key concepts related to working capital management, including:
- The need to properly manage current assets and current liabilities. It explains concepts like gross working capital, net working capital, and operating cycle.
- Determinants of working capital like the nature of business, market conditions, and credit policy are covered. Different approaches to financing working capital like matching, conservative, and aggressive are outlined.
- The operating cycle and its components like inventory conversion period and debtors conversion period are defined. The importance of managing working capital and maintaining adequate liquidity is emphasized.
Bank regulation.ppt
The trade terms '1/10, net 45' indicate that a 1% discount is permitted if payment is made within 10 days.
Unit 2.ppt
This document discusses sources of working capital finance for firms, including trade credit, bank borrowings, and commercial paper. It outlines recommendations from committees like Dehejia, Tandon, and Chore on regulating bank finance for working capital needs. Key recommendations include establishing norms for inventory and receivables, setting maximum permissible bank finance limits, and reducing dependence on bank credit by separating credit limits into peak and non-peak levels. Commercial paper is introduced as an alternative source of short-term funds for firms through unsecured promissory notes.
Unit 2 Ratio Analysis.ppt
This document discusses ratio analysis and various financial ratios used to analyze the financial condition of a firm. It defines ratio analysis as the assessment of a firm's past, present, and future financial conditions using financial statements and comparisons of financial ratios. Various types of financial ratios are classified, including liquidity ratios that measure a firm's short-term solvency and ability to meet current liabilities. Specific liquidity ratios discussed include the current ratio, quick ratio, and cash ratio.
Unit 2 Regulations.ppt
This document discusses the financing of working capital and banking policy in India. It summarizes the recommendations of the Dehejia Committee from 1968, the Tandon Committee from 1974, and the Chore Committee from 1979 on regulating bank financing of working capital. The Tandon Committee emphasized using an operating plan and production-based financing approach, with partial bank financing. It recommended inventory and receivable norms, lending norms, and calculating maximum permissible bank finance through different methods. The Chore Committee recommended reducing dependence on bank credit, separating credit limits into peak and non-peak levels, continuing the existing lending system, and improving information systems.
Unit 6 Inventoy. ppt.ppt
The document discusses techniques for effective inventory management. It aims to highlight the need for and nature of inventory, explain different inventory management techniques, and focus on analyzing inventory as an investment decision. Some key points discussed include:
- The objectives of inventory management are to maintain efficient production and uninterrupted sales while minimizing investment costs.
- Effective techniques include maintaining continuous supply, sufficient stock levels, and minimizing costs while keeping inventory at an optimal level.
- The economic order quantity model balances ordering and carrying costs to determine the optimal inventory level. Other techniques covered are reorder points, safety stock, and ABC analysis for classification.
Unit 3 part 2.pptx
The document discusses methods for estimating working capital requirements using the operating cycle approach. It explains that the operating cycle consists of the time from purchasing raw materials to converting them into cash from sales. The longer the operating cycle, the greater the working capital needs. It then outlines how to calculate working capital requirements for various current asset and liability line items, including raw materials, work-in-progress, finished goods, receivables, cash, creditors, and outstanding expenses. Steps provided include identifying relevant line items, determining average holding periods, unit costs, and amounts blocked in each line item to calculate total working capital needs.
Unit 3 1.pptx
This document discusses different approaches to estimating working capital requirements, which is the difference between current assets and current liabilities. It describes estimating working capital as a percentage of net sales, total assets, or fixed assets based on historical trends. The operating cycle approach estimates working capital needs based on time lags between purchasing inventory and collecting from debtors. Accurately estimating working capital requirements is important for effective planning and management of a business's finances.
Unit 5 Cash mgt.pptx
(a) 3% Discount if payment in 15 days, otherwise full payment in 40 days,
Cash discount terms indicate the discount percentage available if payment is made within a certain number of days, otherwise full payment is due after a specified number of days.
3/15, net 40 means:
- 3% discount if payment is made within 15 days
- Otherwise, full payment is due in 40 days with no discount
So the correct option is a.
Unit 5Cash Management 2.docx.pptx
This document discusses cash management. It defines cash management and explains that it involves managing cash flows into and out of a firm, cash flows within a firm, and cash balances. It outlines objectives of cash management like meeting cash outflows and optimizing cash balances. It discusses techniques for cash management like cash planning, managing cash flows, determining optimal cash levels, and investing surplus cash. It also covers topics like cash budgets, managing cash collections and disbursements, controlling the float, and models for determining optimal cash balances.
More from AnshikaMaheshwari10 (12)
Recently uploaded
DearbornMusic-KatherineJasperFullSailUni
My powerpoint presentation for my Music Retail and Distribution class at Full Sail University
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
“After being the most listed dog breed in the United States for 31
years in a row, the Labrador Retriever has dropped to second place
in the American Kennel Club's annual survey of the country's most
popular canines. The French Bulldog is the new top dog in the
United States as of 2022. The stylish puppy has ascended the
rankings in rapid time despite having health concerns and limited
color choices.”
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Transport Solution
一比一原版新西兰奥塔哥大学毕业证（otago毕业证）如何办理
一模一样【微信：A575476】【新西兰奥塔哥大学毕业证（otago毕业证）成绩单Offer】【微信：A575476】（留信学历认证永久存档查询）采用学校原版纸张、特殊工艺完全按照原版一比一制作（包括：隐形水印，阴影底纹，钢印LOGO烫金烫银，LOGO烫金烫银复合重叠，文字图案浮雕，激光镭射，紫外荧光，温感，复印防伪）行业标杆！精益求精，诚心合作，真诚制作！多年品质 ,按需精细制作，24小时接单,全套进口原装设备，十五年致力于帮助留学生解决难题，业务范围有加拿大、英国、澳洲、韩国、美国、新加坡，新西兰等学历材料，包您满意。
【业务选择办理准则】
一、工作未确定，回国需先给父母、亲戚朋友看下文凭的情况，办理一份就读学校的毕业证【微信：A575476】文凭即可
二、回国进私企、外企、自己做生意的情况，这些单位是不查询毕业证真伪的，而且国内没有渠道去查询国外文凭的真假，也不需要提供真实教育部认证。鉴于此，办理一份毕业证【微信：A575476】即可
三、进国企，银行，事业单位，考公务员等等，这些单位是必需要提供真实教育部认证的，办理教育部认证所需资料众多且烦琐，所有材料您都必须提供原件，我们凭借丰富的经验，快捷的绿色通道帮您快速整合材料，让您少走弯路。
留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
→ 【关于价格问题（保证一手价格）
我们所定的价格是非常合理的，而且我们现在做得单子大多数都是代理和回头客户介绍的所以一般现在有新的单子 我给客户的都是第一手的代理价格，因为我想坦诚对待大家 不想跟大家在价格方面浪费时间
对于老客户或者被老客户介绍过来的朋友，我们都会适当给一些优惠。
选择实体注册公司办理，更放心，更安全！我们的承诺：可来公司面谈，可签订合同，会陪同客户一起到教育部认证窗口递交认证材料，客户在教育部官方认证查询网站查询到认证通过结果后付款，不成功不收费！
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
Nathalie zal delen hoe DEI en ESG een fundamentele rol kunnen spelen in je merkstrategie en je de juiste aansluiting kan creëren met je doelgroep. Door middel van voorbeelden en simpele handvatten toont ze hoe dit in jouw organisatie toegepast kan worden.
Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...
50 million companies worldwide leverage WhatsApp as a key marketing channel. You may have considered adding it to your marketing mix, or probably already driving impressive conversions with WhatsApp.
But wait. What happens when you fully integrate your WhatsApp campaigns with HubSpot?
That's exactly what we explored in this session.
We take a look at everything that you need to know in order to deploy effective WhatsApp marketing strategies, and integrate it with your buyer journey in HubSpot. From technical requirements to innovative campaign strategies, to advanced campaign reporting - we discuss all that and more, to leverage WhatsApp for maximum impact. Check out more details about the event here https://events.hubspot.com/events/details/hubspot-new-delhi-presents-unlocking-whatsapp-marketing-with-hubspot-integrating-messaging-into-your-marketing-strategy/
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
9356872877Sattamatka.satta.matka.satta matka.kalyan weekly chart.kalyan chart.kalyan jodi chart.kalyan penal chart.kalyan today.kalyan open.fix satta.fix fix fix Satta matka nambar.Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Kirill Klip GEM Royalty TNR Gold Copper Presentation
Tesla Energy rEVolution And The Golden Age For Copper: Kirill Klip GEM Royalty TNR Gold Copper Presentation
欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【网址🎉ac22.net🎉】
【网址🎉ac22.net🎉】欧洲杯投注是体育博彩和在线赌场之一，得益于UKGC的三项许可。 成立之初是三名博彩公司将40家博彩商店的合并的结果，共同创建一家名为欧洲杯投注的公司。 欧洲杯投注在线赌场为游戏爱好者提供了300多种游戏，其中200多种老虎机，其他游戏包括二十一点，轮盘，真人荷官和真人赌场等。
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
Part 2 Deep Dive: Navigating the 2024 Slowdown
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
PM Surya Ghar Muft Bijli Yojana: Online Application, Eligibility, Subsidies &...
PM Surya Ghar Muft Bijli Yojana: Online Application, Eligibility, Subsidies &...Ksquare Energy Pvt. Ltd.
During the budget session of 2024-25, the finance minister, Nirmala Sitharaman, introduced the “solar Rooftop scheme,” also known as “PM Surya Ghar Muft Bijli Yojana.” It is a subsidy offered to those who wish to put up solar panels in their homes using domestic power systems. Additionally, adopting photovoltaic technology at home allows you to lower your monthly electricity expenses. Today in this blog we will talk all about what is the PM Surya Ghar Muft Bijli Yojana. How does it work? Who is eligible for this yojana and all the other things related to this scheme?The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
The Most Inspiring Entrepreneurs to Follow in 2024.pdf
In a world where the potential of youth innovation remains vastly untouched, there emerges a guiding light in the form of Norm Goldstein, the Founder and CEO of EduNetwork Partners. His dedication to this cause has earned him recognition as a Congressional Leadership Award recipient.
Prescriptive analytics BA4206 Anna University PPT
Business analysis - Prescriptive analytics Introduction to Prescriptive analytics
Prescriptive Modeling
Non Linear Optimization
Demonstrating Business Performance Improvement
Recently uploaded (20)
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...
Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka
Kirill Klip GEM Royalty TNR Gold Copper Presentation
Kirill Klip GEM Royalty TNR Gold Copper Presentation
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
PM Surya Ghar Muft Bijli Yojana: Online Application, Eligibility, Subsidies &...
PM Surya Ghar Muft Bijli Yojana: Online Application, Eligibility, Subsidies &...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
The Most Inspiring Entrepreneurs to Follow in 2024.pdf
The Most Inspiring Entrepreneurs to Follow in 2024.pdf
Unit 4 RM1.ppt
- 2. Trade Credit • Trade Credit happens when a firm sells its products or services on credit and does not receive cash immediately. • Characteristics of Credit Sale: Involves an element of risk Based on economic value Implies Futurity 2
- 3. Why do companies extend credit
- 4. Costs and Benefits of Extending Credit Costs • Collection Cost • Capital Cost • Delinquency Cost • Default Cost Benefits • Increase Sales • Attract New Customers • Protection from Competition 4
- 5. Credit Policy • Credit policy of a firm provides the framework to determine Whether or not to extend credit to a customer How much credit to extend 5
- 6. Goals of Credit Policy • Marketing tool • Maximization of Sales vs. incremental profit Production and Selling Costs Administration Costs Bad Debt losses 6
- 7. Variables in Credit Policy • Credit Standards • Credit Analysis • Credit Terms • Collection Policy and Procedures 7
- 8. Credit Standards • Credit standards are the basic criteria for the extension of credit to customers. Two types Tight or restrictive Liberal or non-restrictive Implications on the following Factors Collection Cost Investment in receivables Bad debt expenses Sale Volume 8
- 9. Credit Analysis • Credit analysis involves obtaining credit information and evaluation of credit applicants. Obtaining Credit Information Internal External Financial Statements Bank References Trade References Credit Bureau Report Analysis of Credit information Quantitative Qualitative 9
- 10. Credit Analysis: Customer Aspects • Two aspects of Quality of Customers: • Average Collection Period • Default Rate • Probability of Default: Three C’s • Character • Capacity • Condition • Types of Customers • Good Accounts • Bad Accounts • Marginal Accounts 10
- 11. Credit Terms • Credit terms specify the repayment terms required of credit customers/receivables. Credit terms have 3 components: Credit Period Cash Discount Cash Discount Period e.g. 2/10 net 30 2 signifies the cash discount. 10 represents the time duration (10 days) within which the customer must pay to be entitled to the discount. 30 means the maximum period for which credit is available. 11
- 12. Credit terms • Credit period: The length of time for which credit is extended to customers is called Credit period. • Cash Discount: A reduction in payment offered to customers to induce them to repay credit obligations 12
- 13. Cost of Discount Average collection period 40 days To reduce it firm offers cash discount of 3/10 If balance is Rs. 100 then Annual Financing Cost is: AFC = %Discount/(100-%Discount) x 365/(Credit Period – Discount Period) x 100
- 14. ABC Ltd. Is offering a cash discount under the term 3/15, 2/30, net 50. In order to reduce the average collection period, it has two alternative policies before it. These are i) 3.5/12 , 2/30, net 50 ii) 3/15 , 2.5/25, net 50 Evaluate the alternatives and make suggestions
- 15. AFC = i) = 3/97 x 365/35 x 100 = 32.25% ii) = 2/98 x 365/20 x 100 = 37.24% Alternative-I AFC = 3.5/96.5 x 365/38 x 100 = 34.84 % Alternative-II AFC = 2.5/97.5 x 365/25 x 100 = 37.43%
- 16. Collection Policies • Collection policy involves procedures for collecting accounts receivables when they are due. Two aspects • Degree of Collection Effort • Type of Collection Effort 16
- 17. Degree of Collection Efforts The collection efforts may be categorized into: Strict/Tight Lenient
- 18. Type of Collection Efforts The steps usually taken are: Letters including reminders Telephone calls for personal contact Personal visits Help of Collection Agencies Legal Action