FIN 305 Chapter Notes - Chapter 10: Inventory Turnover, Operations Management, Deferral
15 Nov 2016
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Manage cash and other working capital items. Supplier terms; negotiations (costs, timing, volume discounts) Aka bootstrapping , b/c it is compensating for disadvantages of using other ppl"s 16768$ (aka opm) There are often lots of untapped resources within the co. that can reduce and/or defer the total need/costs of external financing. Managing working capital (current assets): own investments in the future. Be needs to maintain certain minimum balance to operate. This needs to be accessible to pay back ppl. If there is a surplus balance, it can be invested. Then, move it into chq-ing acct when needed; this way at least when it is sitting there it is collecting some interest, even if only a little. Prepare cf forecasts and budgets (monthly basis minimum) Foretell any cf shortages; can be active instead of reactive. Someone should be tracking cust. "s high-frequency purchases. Have fast delivery ( just in time inventory)
