Working Capital Management Assignment :: Business Finance

running(a) with child(p) Management Worksheet innovationApplication of Concept in Scenario credit of Concept in ReadingPersonal Experience in your administrationShort-term financing planBank loan borrowing from the bank. reach payable pitchting 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. 852In order to meet the liabilities of deferred tax payment and the companys payable obligation, my company has utilise 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 property inf humiliated. notes outflow.The task imposed on the CFO of planning silver in inflow and funds outflow to retain at least a minimum of $50,000 each week while property the loan commove to the least level required a careful financial budgeting. Brealey, 2005, p.849At m y company, a budget for expecting expenses associated with a particular property will be planned. Improvements on the property and projected bullion inflow will be assessed in order to piss the needed cash handy for the coming(prenominal) month. Credit ManagementAccounts 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.814Property managers are told to collect rents from tenants as much as possible each month. To put forth this effort and encouraging them to in reality make the attempts, special bonus is paid out if a real percentage on total rent for the property has been reached.Working Capital Management WorksheetConceptApplication of Concept in ScenarioCitation of Concept in ReadingPersonal Experience in your OrganizationCashOffering l iquidity.Being better prepared in case of cash shortage.The requirement of retaining at least a minimum of $50,000 on cash applies to the concept that cash has more liquidity to offer. Also having enough cash on hand increase the chance for the company to survive for unheralded event as illustrated in the scenario where additional liabilities were due because of poor forwarding and handling about the shipped equipments. Brealey, 2005, p.821This concept can also be ascertained in the company where I am with. Besides the weekly discover cut to meet our obligations, additional cash has been put aside by our controller. Once it has reached the set level, surplus will be distributed to other properties that have funding shortages for planned projects.