Working Capital Management Assignment :: Business Finance

Working Capital Management Worksheet belief act of Concept in ScenarioCitation of Concept in development face-to-face Experience in your OrganizationShort-term financing planBank loan borrowing from the brink.Stretching payable contriveting off paying its bills.Due to the situation that Lawrence has put the order 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 measure payment and the companys payable obligation, my company has applied for a revolving credit fund by our lender. So for the short-run, my company where I am working for has managed to subscribe payment on time.Financial budgetingCash inflow.Cash natural spring.The toil enforce 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 unavoidable a c areful financial budgeting. Brealey, 2005, p.849At my comp any, a budget for expecting expenses associated with a particular property will be planned. Improvements on the property and project cash inflow will be assessed in order to experience the needed cash handy for the upcoming month. Credit ManagementAccounts receivables.Accounts payables.Regarding the task required based on the scenario in the simulation, the CFO has to negotiate short 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 really make the attempts, special allowance is paid out if a certain percentage on integrality rent for the property has been reached.Working Capital Management WorksheetConceptApplication of Concept in ScenarioCitation of Concept in ReadingPersonal Experience in your OrganizationCashOffering liquidity.Bei ng bankrupt prepared in case of cash shortage.The requirement of retaining at least a minimum of $50,000 on cash applies to the image that cash has more liquidity to offer. Also having enough cash on hand add the chance for the company to survive for unexpected event as illustrated in the scenario where additive liabilities were due because of poor packaging and handling about the shipped equipments. Brealey, 2005, p.821This concept can also be observed in the company where I am with. Besides the weekly check cut to meet our obligations, additional cash has been put aside by our controller. Once it has reached the set level, special will be distributed to other properties that have funding shortages for planned projects.