Corporate Finance #6 Management of Current Assets
Learn management of current assets form a certified public accountant (CPA)
705 Management of Current Assets Introduction
710 Management of Cash
715 Cash Management International
720 Marketable Securities
725 Accounts Receivable Management
730 Inventory Management
735 Just-In-Time Inventory
711 Cash Management (1)
713 Foreign Currency Cash Management (1)
715 Accounts Receivable & Ave Collection Period (1)
722 Economic Ordering Quantity (EOQ) Prob 1
726 Level vs Seasonal Production Decision (1)
727 Customer Credit Policy Decision (1)
731 Customer Credit Policy, Turnover Ratios, & ROI (1)
732 Customer Payment Terms & Discount Policy (1)
734 Customer Payment Terms & Discount Policy (1)
711 Cash Management
713 Foreign Currency Cash Management
715 Accounts Receivable & Ave Collection Period
721 Accounts Receivable Aging
722 Economic Ordering Quantity (EOQ) Prob 1 (2)
724 Economic Ordering Quantity (EOQ) Prob 2
726 Level vs Seasonal Production Decision
727 Customer Credit Policy Decision
731 Customer Credit Policy, Turnover Ratios, & ROI
732 Customer Payment Terms & Discount Policy
734 Customer Payment Terms & Discount Policy
This course will discuss how to manage current assets from a corporate finance perspective.
It will include many example problems, some in presentation format, some using Excel worksheets. Each Excel problem will include a downloadable Excel workbook having at least two tabs, one with the answer, another with a preformatted worksheet you can populate along with the step-by-step instructional videos.
Current asset classes we will consider include cash, accounts receivable, inventory, and marketable securities.
Balancing the asset mix between current assets and long-term assets is critical and helps a company maintain a safe level of liquidity, while maximizing profitability.
Cash management is at the heart of a good current asset strategy, cash being part of every business cycle. Sufficient cash will be needed to pay out obligations as they become due.
Collecting on accounts receivable efficiently can help increase cash flow. Company may use strategies like cash discounts to increase accounts receivable turnover. When using cash discounts, a company needs to compare the benefit of increased cash flow to the cost of the discount.
Finding the ideal level of inventory turnover will also improve performance greatly. A reduction in the period of time inventory is held can reduce holding costs and lesson the chance of spoilage or obsolescence.
We will discuss the concept of a just in time inventory system.