Questions on Short-Term Finance

What tooshie managers do to control the cash cycle? What ar the tradeoffs In cut back the cash cycle? Know how to calculate Elements of the cash cycle and the direct cycle Managing the Working Capital Cycle (Chi. L) For what aspects of operative capital does pecuniary management have responsibility? What atomic number 18 the two key beas of operatives capital polity set by financial management? What be the objectives In compass working capital asset policy? What Is the digression between temporary current assets and permanent current assets? In what ways mountain working capital assets be balanced? What is spontaneous finance of working capital assets?How is the amount to be used imaged? What should be considered in choosing between short-term and permanent financing sources for keep working capital assets? What are the tradeoffs? How can the lifetime of assets be matched to the maturity of funding sources (I. E. , what Is a restrictive working capital financing strategy)? How can working capital assets be financed more flexibly than with a restrictive strategy? How can they be financed more aggressively? Cash Management (Chi. L &038 Chi. 2) What is the focus of short-term financial planning? What are the steps of the short-term financial planning process?How are cash collections forecast? How are cash disbursements forecast? What are the elements of a typical cash cipher? why is short-term debt appropriate for c overing short-term cash deficits? What are the typical sources of short-term funds? What Is a line of quotation? What are the tradeoffs in cash? What is cash? How are borrowing reserves and saleable securities like cash? What is float? What types of float exist? Why do we care about float? How do we deal with float? What tools can we use to manage float? What is a locker arrangement? How do we compare costs and benefits of a locker?How does using a locker help us to manage risk? Elements of a cash budget Float time, float balan ces Costs and benefits of lockers Credit and Inventory Management Managing Accounts receivable/Setting Credit Policy (Chi. 3) What are the elements of a receivables management curriculum? What are the components of a ac recognise policy? What are the tradeoffs in setting credit policy terms? How does competition go the optimization of credit policy terms? How can a vendor have a lending cost advantage over other banks and finance companies? Why might a vendor be able to charge a higher price for goods and services by offering reedit?When might a vendor find it necessary to offer credit in say to establish reputation? What are the advantages/disadvantages of open account billing over invoice billing? What factors affect the ideal credit period? What factors determine whether or not credit (early payment) discounts should be offered? What are the five Cos of credit? What tools are used to monitor receivables? How is the impersonal nature of collection agencies both good and bad? I n what forms can credit be offered to customers? How does a firm offering credit to customers finance its own receivables? What is acting of receivables?What are the advantages/disadvantages of factoring? What elements of a credit policy decision can be quantified? How may a transform in credit policy affect the costs associated with inventories? How may a diversify in credit policy affect the costs associated with receivables? In what two ways can communicate bad debt losses be affected by a change in credit policy? What are the costs/benefits of offering discounts? yearly percentage costs of credit discounts Costs, benefits, and net benefit of a change in credit policy Break-even probabilities and percentages for a change in credit policy