MGMT 3320 Chapter Notes - Chapter 6: Yield Curve, Corporate Finance, Byrsonima Crassifolia

• School: University of Guelph
• Department: Management
• Course: MGMT 3320
• Professor: Rachel Elliott

Document Summary

Self-liquidating assets: sold at end of speci c time period; current assets. When sales rise faster than production, inventory declines and receivables rise. Publishing companies: seasonal sales; require careful working capital management and control. Managers monitor state of current assets to ensure liquidity. Businesses hold current assets to better serve clients. Management should have well developed credit facilities with the support of suppliers and nancial institutions to enhance rms liquidity. Cash flow cycle: liquidity determined by cash owing through the company. Cash ow relies on the: effort and success of sales team, speed of the treasury functions (collecting, processing, and transferring funds through the nancial system, ef ciency of the production process ( raw materials to nished product) Primary consideration in managing cash ow: ensure in ows and out ows of cash are properly synched for transaction purposes. Cash in ows are driven by sales and in uenced by type of consumers.