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Working Capital Management Worksheet
Concept Application of Concept in Scenario Citation of Concept in Reading Personal Experience in your Organization
Short-term financing plan:
Bank loan borrowing from the bank.
Stretching payable putting off paying its bills.
Due to the situation that Lawrence has put the company into, in which Lawrence had borrowed from the bank and deferred payment to Gartner by a week. Brealey, 2005, p. 852 In order to meet the liabilities of deferred tax payment and the company's payable obligation, my company has applied for a revolving credit line by our lender. So for the short-run, my company where I am working for has managed to make payment on time.
Financial budgeting:
Cash inflow.
Cash outflow.
The task imposed on the CFO of planning cash inflow and cash outflow to retain at least a minimum of $50,000 each week while keeping the loan burden to the least level required a careful financial budgeting. Brealey, 2005, p.849 At my company, a budget for expecting expenses associated with a particular property will be planned. Improvements on the property and projected cash inflow will be assessed in order to have the needed cash handy for the upcoming month.
Credit Management:
Accounts receivables.
Accounts payables.
Regarding the task required based on the scenario in the simulation, the CFO has to negotiate short-term payment and collection arrangements with its business partners for keeping the amount of cash the company needs to borrow as low as possible. Brealey, 2005, p.814 Property managers are told to collect rents from tenants as much as possible each month. To put forth this effort and encouraging them to really make the attempts, special bonus is paid out if a certain percentage on total rent for the property has been reached.
Working Capital Management Worksheet
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