Managing Cash Flow

352 Managing Cash Flow
Sales function (cont’d)
management/responsibilities of,
104–105
and methods of compensation,
109–110
and methods of sales, 108–109
and organizational planning systems,
98–100
and planning/budget systems,
100–103
pricing strategies for, 105–107
and product analysis, 107–108
purpose of, 96–98
Second-day availability rule, 25
Secured borrowing, 255
Security-based financing, 256
September 11, 2001 terrorist attacks, 21
Services:
bank, 30–31
production of, 7, 10–11
Service charges, 29
SFAS 95, see Statement of Financial
Accounting Standards Board No. 95
Shareholders, 3, 124
Shortfalls, cash, 272–275, 279
Short-term borrowing, 253–256
Short-term investing, 239–240
Short-term notes, 255
Short-term operating plans, 85–88
Short-term planning, 81–94
budgeting step of, 87
detail plans/programming step of,
86, 87
evaluating step of, 88
implementing step of, 87–91
key results in, 91–93
and measurement techniques, 93–94
planning step of, 86
underlying theory for, 83–85
Size (of bank), 30
“Sleep insurance,” 17, 278
Special-interest groups, 3, 124
Spreadsheet driven process, 80
Stability (of bank), 30
Stakeholders, 2–3, 124
Statements of cash flows, 12, 286, 287,
305, 307–309, 312–316
Statement of Financial Accounting
Standards Board No. 95 (FASB 95)—
Statement of Cash Flows, 280,
285–287, 292
Statistics, borrowed, 146
Stock, company, 12
Stockholders, 253
Strategic planning process, 76–81
Strengths, weaknesses, opportunities,
and threats (SWOT) analysis, 86
Subcontractors, 124
Suppliers, 3, 124, 314–315
Survey form, cash management analysis,
188–192
Survival, 3, 222
SWOT (strengths, weaknesses,
opportunities, and threats)
analysis, 86
Synergy strategy, 76
T
Tax considerations, 245
Terms, see Cash discounts
Time frame (for cash planning), 265–266
Time value of money, 245–246
Top down systems, 80
Top management:
benchmarking role of, 130
planning role of, 72–73, 81–82, 84
sales function role of, 104, 105
sales study role of, 95–96
Total business float, 26–28
Total Quality Management (TQM), 156
Trade credit, 253–254
Traditional costing, 157–161, 165
Trend percentages, 221
U
Unique niche, 106
Unit level activities, 163
Unsecured borrowing, 255
U.S. Postal Service, 25
U.S. Treasury, 22
V
Vendors, 3, 124, 252–253
Wire transfers, 54
W
Z
Zero balance accounts, 66, 67