Managing Cash Flow

More documents

Recommendations

Info

Cash Flow Reporting and Controls 297 1. SALES—estimates with earlier months based on shipment/backlog schedule 2. A/REC COLLECTIONS—calculated to maintain collection period under 50 days 3. OTHER RECEIPTS—October includes tax refund; other months are nominal receipts 4. PURCHASES—estimates based on historical data 5. FACTORY LABOR—October to January – 5,600 hrs/wk 7.80/hr # payroll weeks —February to July – 5,600 hrs/wk 8.05/hr # payroll weeks —August to September – 5,600 hrs/wk 8.25/hr # payroll weeks 6. SALARIES—October to December – $10,300/wk # payroll weeks —January to March – $10,500/wk # payroll weeks —April to September – $10,900/wk # payroll weeks 7. VACATION/BONUS – estimates 8. FICA – 7.65% of payroll 9. UNEMPLOYMENT—October – $15,000; January – $12,000; April – $20,000; July – $15,000; – all estimates WORKERS COMP. – October to November and February to September @ $2,000/month; December @ 0 10. MEDICAL ... INSURANCE PREMIUMS—estimates 11. FACTORY EXPENSES—estimates based on historical data Exhibit 9.2b Cash Flow Forecast Assumptions— October 20xx to September 20xy
298 Controlling and Analyzing Cash Flow 12. ADMINISTRATIVE EXPENSES—estimates based on historical data 13. PROPERTY TAXES/INSURANCE—per schedule of premium and tax due dates 14. FIXED ASSETS—estimates plus known expenditures 15. INCOME TAXES—per separate schedule of tax calculations 16. ADVANCES TO SUBSIDIARY #B—estimates 17. OTHER—contingency 18. BORROWING—per separate repayment schedule Exhibit 9.2b Cash Flow Forecast Assumptions— October 20xx to September 20xy (continued)
Page 2 and 3:
Managing Cash Flow An Operational F
Page 4 and 5:
Contents About the Authors Acknowle
Page 6 and 7:
ABOUT THE AUTHORS Rob Reider, CPA,
Page 8 and 9:
About the Authors vii • Cash Flow
Page 10 and 11:
INTRODUCTION CASH IS KING! Cash ava
Page 12 and 13:
Why the Business Exists 3 • Custo
Page 14 and 15:
Some Basic Business Principles 5
Page 16 and 17:
Purpose of this Book 7 • Are sale
Page 18 and 19:
CHAPTER 1 Understanding Cash Manage
Page 20 and 21:
Understanding Cash Management 11 qu
Page 22 and 23:
Cash Flow Basics 13 minimizing the
Page 24 and 25:
Cash Flow Basics 15 FROM CASH TO CA
Page 26 and 27:
Cash Flow Basics 17 • There needs
Page 28 and 29:
Cash Flow Basics 19 The main reason
Page 30 and 31:
History, the Fed, and Float 21 HIST
Page 32 and 33:
History, the Fed, and Float 23 •
Page 34 and 35:
History, the Fed, and Float 25 vers
Page 36 and 37:
History, the Fed, and Float 27 Rece
Page 38 and 39:
Bank Issues and Concerns 29 • Che
Page 40 and 41:
Bank Issues and Concerns 31 or neve
Page 42 and 43:
Conclusion 33 affects its relations
Page 44 and 45:
CHAPTER 2 Managing Cash Flow—Rece
Page 46 and 47:
Using the Balance Sheet 37 Change 2
Page 48 and 49:
Cash Receipts 39 which could be use
Page 50 and 51:
Cash Receipts 41 Sales per Day Avg.
Page 52 and 53:
Cash Receipts 43 happening—would
Page 54 and 55:
Cash Receipts 45 Invoicing The star
Page 56 and 57:
Cash Receipts 47 earmark those for
Page 58 and 59:
Cash Receipts 49 We can adjust the
Page 60 and 61:
Cash Receipts 51 Finance Charges CA
Page 62 and 63:
Cash Receipts 53 Standard sized env
Page 64 and 65:
Cash Receipts 55 PAC Issuing Instit
Page 66 and 67:
Cash Receipts 57 duction of about $
Page 68 and 69:
Cash Disbursements 59 Sequence of A
Page 70 and 71:
Cash Disbursements 61 determine whe
Page 72 and 73:
Cash Disbursements 63 this system t
Page 74 and 75:
Cash Disbursements 65 Estimated Fun
Page 76 and 77:
Conclusion 67 Local Office #1 Sales
Page 78 and 79:
CHAPTER 3 Planning and Budgeting PL
Page 80 and 81:
Relationship Between Planning and B
Page 82 and 83:
Relationship Between Planning and B
Page 84 and 85:
Strategies for Competitive Advantag
Page 86 and 87:
Strategic Planning Process 77 EXTER
Page 88 and 89:
Strategic Planning Process 79 Once
Page 90 and 91:
Short-Term Planning 81 D. PLANNING
Page 92 and 93:
Short-Term Planning 83 TOP MANAGEME
Page 94 and 95:
Short-Term Planning 85 Segment miss
Page 96 and 97:
Short-Term Planning 87 Planning mis
Page 98 and 99:
Short-Term Planning 89 limited in n
Page 100 and 101:
Short-Term Planning 91 achievements
Page 102 and 103:
Short-Term Planning 93 Credit/Colle
Page 104 and 105:
CHAPTER 4 Analyzing the Sales Funct
Page 106 and 107:
Purpose of the Sales Function 97 a
Page 108 and 109:
Purpose of the Sales Function 99 1.
Page 110 and 111:
Purpose of the Sales Function 101 L
Page 112 and 113:
Purpose of the Sales Function 103 b
Page 114 and 115:
Purpose of the Sales Function 105
Page 116 and 117:
Purpose of the Sales Function 107 b
Page 118 and 119:
Page 120 and 121:
Purpose of the Sales Function 111 S
Page 122 and 123:
Purpose of the Sales Function 113 1
Page 124 and 125:
Purpose of the Sales Function 115 t
Page 126 and 127:
Purpose of the Sales Function 117 1
Page 128 and 129:
Purpose of the Sales Function 119 r
Page 130 and 131:
Page 132 and 133:
CHAPTER 5 Cost Reduction Analysis P
Page 134 and 135:
Benchmarking Strategies 125 BENCHMA
Page 136 and 137:
Benchmarking Strategies 127 determi
Page 138 and 139:
Benchmarking Strategies 129 The ben
Page 140 and 141:
Benchmarking Strategies 131 Product
Page 142 and 143:
Benchmarking Strategies 133 Sales F
Page 144 and 145:
Benchmarking Strategies 135 so that
Page 146 and 147:
Benchmarking Strategies 137 To this
Page 148 and 149:
Benchmarking Strategies 139 • Wha
Page 150 and 151:
Benchmarking Strategies 141 increas
Page 152 and 153:
Benchmarking Strategies 143 no ince
Page 154 and 155:
Benchmarking Strategies 145 to eval
Page 156 and 157:
Benchmarking Strategies 147 Accordi
Page 158 and 159:
Benchmarking Strategies 149 Number
Page 160 and 161:
Benchmarking Strategies 151 • Pur
Page 162 and 163:
Activity Based Costing Principles 1
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Page 180 and 181:
Page 182 and 183:
Page 184 and 185:
Conclusion 175 the costs to particu
Page 186 and 187:
Looking at the Accounting Function
Page 188 and 189:
Choosing What to Analyze 179 expert
Page 190 and 191:
Choosing What to Analyze 181 1. Def
Page 192 and 193:
Identifying Goals and Basic Busines
Page 194 and 195:
Financial Reporting 185 2. Accounts
Page 196 and 197:
Financial Reporting 187 ASSETS Cash
Page 198 and 199:
Compiling the Data 189 1. Organizat
Page 200 and 201:
Compiling the Data 191 h. What is y
Page 202 and 203:
Analyzing the Data 193 1. Organizat
Page 204 and 205:
Analyzing the Data 195 e. Do you au
Page 206 and 207:
Analyzing the Data 197 c. Can you p
Page 208 and 209:
Organizational Issues 199 Controlle
Page 210 and 211:
Budget Analysis 201 Budget Actual C
Page 212 and 213:
Analysis of Functional Costs 203
Page 214 and 215:
Analysis of Functional Costs 205 La
Page 216 and 217:
Analysis of Accounting Operations 2
Page 218 and 219:
Analysis of Accounting Operations 2
Page 220 and 221:
Activity-Based Costing Applications
Page 222 and 223:
Developing Recommendations 213 •
Page 224 and 225:
Specific Recommendations 215 7. Per
Page 226 and 227:
Specific Recommendations 217 ager a
Page 228 and 229:
Specific Recommendations 219 figure
Page 230 and 231:
Specific Recommendations 221 • Gr
Page 232 and 233:
Specific Recommendations 223 • Sa
Page 234 and 235:
Specific Recommendations 225 Curren
Page 236 and 237:
Page 238 and 239:
Specific Recommendations 229 Based
Page 240 and 241:
Page 242 and 243:
Organization Recommendations 233
Page 244 and 245:
Other Areas for Review 235 • The
Page 246 and 247:
Conclusion 237 must change its beli
Page 248 and 249:
CHAPTER 7 Investing, Financing, and
Page 250 and 251:
Investing Excess Cash 241 puts upwa
Page 252 and 253:
Investing Excess Cash 243 Instrumen
Page 254 and 255:
Investing Excess Cash 245 • Depre
Page 256 and 257: Investing Excess Cash 247 Cash Outf
Page 258 and 259: Investing Excess Cash 249 Investmen
Page 260 and 261: Borrowing for Cash Shortfalls 251 t
Page 262 and 263: Borrowing for Cash Shortfalls 253 m
Page 264 and 265: Borrowing for Cash Shortfalls 255 t
Page 266 and 267: Borrowing for Cash Shortfalls 257 r
Page 268 and 269: Borrowing for Cash Shortfalls 259 I
Page 270 and 271: Borrowing for Cash Shortfalls 261 A
Page 272 and 273: CHAPTER 8 Planning Cash Flow MANAGI
Page 274 and 275: Cash Flow Planning 265 or more futu
Page 276 and 277: Cash Flow Planning 267 Cash Budgeti
Page 278 and 279: Cash Flow Planning 269 ACTUAL PROJE
Page 284 and 285: Cash Flow Planning 275 THE MORE VOL
Page 286 and 287: Managing Cash Balances 277 on its u
Page 288 and 289: Cash Planning Approaches 279 Dealin
Page 290 and 291: Cash Planning Approaches 281 Cash f
Page 292 and 293: Conclusion 283 Cash flows from oper
Page 294 and 295: CHAPTER 9 Controlling and Analyzing
Page 296 and 297: Cash Flow Projections: Methodology
Page 302 and 303: Cash Flow Reporting and Controls 29
Page 310 and 311: Interpretation and Analysis of Cash
Page 332 and 333: AFTERWORD The materials in this boo
Page 334 and 335: APPENDIX A Case Study: Managing Cas
Page 336 and 337: Jack B. Nimble Company 327 ($$ in 0
Page 338 and 339: Jack B. Nimble Company 329 ABC Mach
Page 340 and 341: Jan Feb Mar Apr May Jun Jul Aug Sep
Page 342 and 343: Cash Forecast Information 333 him,
Page 344 and 345: Jan Feb Mar Apr May Jun Jul Aug Sep
Page 346 and 347: Jack B. Nimble Company Suggested So
Page 348 and 349: Jack B. Nimble Company Suggested So
Page 350 and 351: APPENDIX B Cash Conservation Checkl
Page 352 and 353: Liabilities and Equity 343 ASSETS Y
Page 354 and 355: Income and Expenses 345 INCOME AND
Page 356 and 357:
Index A ABC, see Activity based cos
Page 358 and 359:
Index 349 traditional, 159-161 unit
Page 360 and 361:
Index 351 P Payables, 16, 59 Paymen
show all

Managing Cash Flow

Create successful ePaper yourself

Delete template?

Save as template?