Overview of Working Capital Management:
· Introduction,
● Working Capital Issues,
● Financing Current Assets-short term and long term mix,
● Combining liability structure and current asset decisions
Managing Cash inflows and Outflows:
● Motives for holding liquid assets,
● The money market,
● Floating and check clearing,
● Cash concentration strategies
● Disbursement management
Cash Forecasting:
● Reasons of forecasting cash flows,
● Types of cash forecast,
● Items to forecast,
● Methods of Financial Forecasting
Models for management of cash and temporary investment :
● The Baumol model
● The Beranek model
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● The Miller Orr Model
Models for management of cash and temporary investment :
· The Stone Model
· Optimizing models for short term investment perspective
· The practice of cash and temporary investment
Terms of Sale Decision:
● Why grant credit,
● Costs, revenues and credit decisions;
● Terms of sale decision, Assessing risk in terms of sale decision
Credit granting decisions:
· Information costs and credit granting decision,
● Credit granting to marginalaccounts:
● Traditional approach, Problems with the traditional approach
Monitoring Accounts Receivables :
● Reasons of monitoring accounts receivables
● Investigating payment patterns using variance analysis
● Monitoring bad debt losses the management of AR in practice
Inventory management:
· Certainty approaches
● Credit and collection policies,
● Analyzing the credit applicant,
● Inventory management and control
Inventory management:
· Uncertainty approaches
● The static inventory problem
● Using the Option pricing model
● Using expected NPV and its co-variance
Inventory management:
· Uncertainty approaches
● NPV with risk adjusted discount rates
● The dynamic inventory problem
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● Monitoring inventory balance
The firms level of aggregate liquidity
● Reason of measuring aggregate liquidity
● Traditional measures of aggregate liquidity
● Improved indices for measuring aggregate liquidity
The firms level of aggregate liquidity
· Liquidity and firm’s financial management process
· Evaluating strategies for aggregate liquidity
· Liquidity management in practice
The management of short term liabilities
● Reasons of using short term financing
● Sources of short term financing
● Calculating the cost of source of short term financing
Working capital management in international setting
● Sources of risk in international transaction
● Hedging exchange rate risk in international transaction
● Management of international working capital accounts