Академический Документы
Профессиональный Документы
Культура Документы
Deficit Surplus
Cash Payments
Borrow Invest
Cash planning
It is the technique to plan and control the use of cash. It helps to anticipate the future cash flows and needs of the firm and reduces the possibility of idle cash balance and cash deficit. Cash Budget -> it is the most significant device to plan for and control cash receipts and payments. Cash forecasts are needed to prepare cash budgets.
Sensitivity Analysis
Optimistic, most probable and pessimistic
Amt of cheques sent by customer which are not yet collected is called collection or deposit float. Decentralised Collections
It is operating in USA and is known as concentration banking It reduces deposit float and consequently the financing requirements
Lock-box system
Lock-box system helps the firm to eliminate the time between the receipt of cheques and their deposit in the bank.
Controlling Disbursements
When a firms actual bank balance is greater than the balance shown in the firms books, the difference is called disbursement or payment float.
C*
Return Point
Sale of Securities
Low Limit
Time
The firm sets the lower control limit as per its requirement of maintaining minimum cash balance. Distance between Upper and Lower limit (Z) =
Z (3 / 4xc / i)
1/ 3