第二十七章短期财务与计划

27-0
Chapter Outline
27.1 Tracing Cash and Net Working Capital 27.2 Defining Cash in Terms of Other Elements 27.3 The Operating Cycle and the Cash Cycle 27.4 Some Aspects of Short-Term Financial Policy 27.5 Cash Budgeting 27.6 The Short-Term Financial Plan 27.7 Summary & Conclusions
=
LongTerm + Debt
Equity
Net Working Capital
=
Cash
–
Other Current Assets
+
Current Liabilities
Long-
Net Working
Cash = Term + Equity – Capital –
Debt
(excluding cash)
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27-4
The Balance-Sheet Model of the Firm
The Net Working Capital Investment Decision
Accounts payable period
Time
Firm receives invoice
Cash paid for materials
Operating cycle
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Cash cycle
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Current Assets
Current Liabilities
Long-Term Debt
Fixed Assets 1 Tangible 2 Intangible
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What longterm investments should the firm engage in?
– Keeping large cash balances and investments in marketable securities.
– Large investments in inventory. – Liberal credit terms.
• A restrictive short-term finance policy would maintain a low ratio of current assets to sales.
Carrying costs
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Shortage costs
CA*
Investment in
Current Assets ($)
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• The Sources and Uses of Cash Statement follows from this reasoning.
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27-2
The Balance-Sheet Model of the Firm
The Capital Budgeting Decision
– Alternative Financing Policies for Current Assets – Usually measured as the proportion of short-term debt to
long-term debt. • Flexible • Restrictive
Fixed Assets
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27.2 Defining Cash in Terms of Other Elements
Long-
Net Working
Cash = Term + Equity – Capital –
Debt
(excluding cash)
Fixed Assets
• An increase in long-term debt and or equity leads to an increase in cash—as does a decrease in fixed assets or a decrease in the non-cash components of net workinright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
27-1
Executive Summary
• We are solidly in to the third great question of corporate finance.
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Carrying Costs and Shortage Costs
$ Minimum point
Total costs of holding current assets.
Current Assets
Net Working Capital
Current Liabilities
Long-Term Debt
Fixed Assets 1 Tangible 2 Intangible
How much shortterm cash flow does a company need to pay its bills?
Shareholders’ Equity
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27-5
27.1 Tracing Cash and Net Working Capital
27-13
Appropriate Flexible Policy
$
Total costs of holding current
assets.
Minimum
Carrying costs
point
27-9
27.3 The Operating Cycle and the Cash Cycle
Accounts Cash cycle = Operating cycle – payable
period
• In practice, the inventory period, the accounts receivable period, and the accounts payable period are measured by days in inventory, days in receivables and days in payables.
27-8
27.3 The Operating Cycle and the Cash Cycle
Raw material purchased
Order Stock Placed Arrives
Finished goods sold
Cash received
Inventory period
Accounts receivable period
– The Size of the Firm’s Investment in Current Assets – Usually measured relative to the firm’s level of total
operating revenues. • Flexible • Restrictive
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27-11
The Size of the Investment in Current Assets
• A flexible policy short-term finance policy would maintain a high ratio of current assets to sales.
Current Assets
Fixed Assets 1 Tangible 2 Intangible
How can the firm raise the money for the required investments?