Boundless Lecture Slides Free to share, print, make copies and changes. Get yours at Available on the Boundless Teaching Platform

Using Boundless Presentations The Appendix The appendix is for you to use to add depth and breadth to your lectures. You can simply drag and drop slides from the appendix into the main presentation to make for a richer lecture experience. Free to edit, share, and copy Feel free to edit, share, and make as many copies of the Boundless presentations as you like. We encourage you to take these presentations and make them your own. Free to share, print, make copies and changes. Get yours at Boundless Teaching Platform Boundless empowers educators to engage their students with affordable, customizable textbooks and intuitive teaching tools. The free Boundless Teaching Platform gives educators the ability to customize textbooks in more than 20 subjects that align to hundreds of popular titles. Get started by using high quality Boundless books, or make switching to our platform easier by building from Boundless content pre-organized to match the assigned textbook. This platform gives educators the tools they need to assign readings and assessments, monitor student activity, and lead their classes with pre-made teaching resources. Get started now at: If you have any questions or problems please

Boundless is an innovative technology company making education more affordable and accessible for students everywhere. The company creates the world’s best open educational content in 20+ subjects that align to more than 1,000 popular college textbooks. Boundless integrates learning technology into all its premium books to help students study more efficiently at a fraction of the cost of traditional textbooks. The company also empowers educators to engage their students more effectively through customizable books and intuitive teaching tools as part of the Boundless Teaching Platform. More than 2 million learners access Boundless free and premium content each month across the company’s wide distribution platforms, including its website, iOS apps, Kindle books, and iBooks. To get started learning or teaching with Boundless, visit boundless.com.boundless.com Free to share, print, make copies and changes. Get yours at About Boundless

Reasons for Maintaining Cash on Hand Defining the Cash Flow Cycle Calculating the Cash Flow Cycle Components of the Cash Budget The Importance of Cash Working Capital Management > The Importance of Cash Free to share, print, make copies and changes. Get yours at rect&utm_source=boundless

Liquidity is the ability to meet obligations when they come due without incurring unacceptable losses. Banks can generally maintain as much liquidity as desired, because bank deposits are insured by governments in most developed countries. Banks can attract significant liquid funds to generate stronger profits, more stability, and more confidence among depositors, investors, and regulators. Cash is the most liquid asset and can be used immediately to perform economic actions like buying, selling, or paying debt, and meeting immediate wants and needs. Bank can attract significant liquid funds to generate stronger profits, more stability, and more confidence among depositors, investors, and regulators. Reasons for Maintaining Cash on Hand Free to share, print, make copies and changes. Get yours at maintaining-cash-on-hand ?campaign_content=book_192_section_125&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=direct&utm_source=boun dless Cash View on Boundless.com Working Capital Management > The Importance of Cash

In management accounting, the cash conversion cycle (CCC) measures how long a firm will be deprived of cash if it increases its investment in resources in order to expand customer sales. It is thus a measure of the liquidity risk entailed by growth. However, shortening the CCC creates its own risks. While a firm could even achieve a negative CCC by collecting from customers before paying suppliers, a policy of strict collections and lax payments is not always sustainable. The term "cash conversion cycle" refers to the timespan between a firm's disbursing and collecting cash. Since a retailer's operations consist of buying and selling inventory, the equation models the time between (1) disbursing cash to satisfy the accounts payable created by purchase of inventory, and (2) collecting cash to satisfy the accounts receivable generated by that sale. Defining the Cash Flow Cycle Free to share, print, make copies and changes. Get yours at cash-flow-cycle ?campaign_content=book_192_section_125&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=direct&utm_source=boundl ess Cash flow cycle View on Boundless.com Working Capital Management > The Importance of Cash

Cash flow cycle = Inventory conversion period + Receivables conversion period – Payables conversion period. Inventory conversion period = Avg. Inventory / (COGS / 365); Receivables conversion period = Avg. Accounts Receivable / (Credit Sales / 365); Payables conversion period = Avg. Accounts Payable / (Purchases / 365). There are five important intervals, referred to as conversion cycles (or conversion periods). Our aim of studying cash conversion cycle and its calculation is to change the policies relating to credit purchase and credit sales. Calculating the Cash Flow Cycle Free to share, print, make copies and changes. Get yours at cash-flow-cycle ?campaign_content=book_192_section_125&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=direct&utm_source=boundl ess Cash cycle View on Boundless.com Working Capital Management > The Importance of Cash

The cash flow budget helps the business determine when its income will be sufficient to cover its expenses and when the company will need to seek outside financing. Components - major classes include cash receipts and payments. Cash receipts include cash generated from operations, cash receipts from customers, proceeds from the sale of equipment, dividends received, and other income. Cash payments include cash paid to suppliers, cash paid to employees, purchase of assets, payments related to mergers and acquisitions, interest paid, income taxes paid, dividends paid, and other payments. Components of the Cash Budget Free to share, print, make copies and changes. Get yours at the-cash-budget ?campaign_content=book_192_section_125&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=direct&utm_source=boun dless Budgeting Example View on Boundless.com Working Capital Management > The Importance of Cash

Free to share, print, make copies and changes. Get yours at Appendix

Key terms balance sheet A summary of a person's or organization's assets, liabilities and equity as of a specific date. cash flow The sum of cash revenues and expenditures over a period of time. Credit Sales Credit Sales are all sales made on credit. liquidity Availability of cash over short term: ability to service short-term debt. mergers and acquisitions Mergers and acquisitions (abbreviated M&A) is an aspect of corporate strategy, corporate finance, and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly, whether in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity, or using a joint venture. money market A market for trading short-term debt instruments, such as treasury bills, commercial paper, bankers' acceptances, and certificates of deposit retail The sale of goods directly to the consumer; encompassing the storefronts, mail-order, websites, etc., and the corporate mechanisms, branding, advertising, etc. that support them, which are involved in the business of selling and point-of-sale marketing retail goods to the public. stockholders A shareholder or stockholder is an individual or institution (including a corporation) that legally owns a share of stock in a public or private corporation. Free to share, print, make copies and changes. Get yours at Working Capital Management

Cash flow cycle Cash conversion cycle (CCC) measures how long a firm will be deprived of cash if it increases its investment in resources in order to expand customer sales. Free to share, print, make copies and changes. Get yours at Google. "Google Image Result for CC BY u/business/betterbusiness/case-studies/manufacturing/speeding-up-the-cash-flow-cycle-waterwand-pty- ltd.aspx&docid=TTa5e835V51vKM&imgurl= om=1&iact=hc&vpx=407&vpy=167&dur=1064&hovh=172&hovw=292&tx=108&ty=87&sig= &page=1&tbnh=147&tbnw=250&start=0&ndsp =15&ved=1t:429,r:1,s:0,i:75 View on Boundless.comCC BY u/business/betterbusiness/case-studies/manufacturing/speeding-up-the-cash-flow-cycle-waterwand-pty- ltd.aspx&docid=TTa5e835V51vKM&imgurl= om=1&iact=hc&vpx=407&vpy=167&dur=1064&hovh=172&hovw=292&tx=108&ty=87&sig= &page=1&tbnh=147&tbnw=250&start=0&ndsp =15&ved=1t:429,r:1,s:0,i:75View on Boundless.com Working Capital Management

Cash cycle Cash cycle measures how long a firm will be deprived of cash if it increases its investment in resources in order to expand customer sales Free to share, print, make copies and changes. Get yours at Google. "Google Image Result for CC BY /news-and-articles/cash-cycle/&docid=i_-DzLKxT3z0_M&imgurl= 300x297.jpg&w=300&h=297&ei=xnl_UPeEJqrJ0QGpxYGIDA&zoom=1&iact=hc&vpx=396&vpy=150&dur=368&hovh=186&hovw=188&tx=114&ty=104&sig= &page=1&tbnh=131&tbnw=133&start=0&ndsp=15&ved=1t:429,r:11,s:0,i:105 View on Boundless.comCC BY /news-and-articles/cash-cycle/&docid=i_-DzLKxT3z0_M&imgurl= 300x297.jpg&w=300&h=297&ei=xnl_UPeEJqrJ0QGpxYGIDA&zoom=1&iact=hc&vpx=396&vpy=150&dur=368&hovh=186&hovw=188&tx=114&ty=104&sig= &page=1&tbnh=131&tbnw=133&start=0&ndsp=15&ved=1t:429,r:11,s:0,i:105View on Boundless.com Working Capital Management

Cash A business's cash account is how much currency it has on hand at a given time. Free to share, print, make copies and changes. Get yours at Wikimedia. "American Cash." Public domain View on Boundless.comPublic domainhttp://commons.wikimedia.org/wiki/File:American_Cash.JPGView on Boundless.com Working Capital Management

Budgeting Example A budget is essential to tracking and controlling money that is coming in to and being spent on a project. Free to share, print, make copies and changes. Get yours at Google. "Google Image Result for CC BY vM:&imgrefurl= wallchart.html&docid=MCC3bzKL_gFKxM&imgurl= AUOrRG6X20gGHmYCoBQ&zoom=1&iact=rc&dur=220&sig= &sqi=2&page=1&tbnh=145&tbnw=106&start=0&ndsp=18&ved=1t:429,r:4,s :0,i:95&tx=37&ty=48 View on Boundless.comCC BY vM:&imgrefurl= wallchart.html&docid=MCC3bzKL_gFKxM&imgurl= AUOrRG6X20gGHmYCoBQ&zoom=1&iact=rc&dur=220&sig= &sqi=2&page=1&tbnh=145&tbnw=106&start=0&ndsp=18&ved=1t:429,r:4,s :0,i:95&tx=37&ty=48View on Boundless.com Working Capital Management

Free to share, print, make copies and changes. Get yours at Working Capital Management Which of the following is a reason to always have cash on hand? A) All of these answers. B) It increases a company's liquidity. C) It allows the company to meet its obligations without incurring avoidable losses. D) It can be used immediately to perform economic actions, such as paying outstanding debts.

Free to share, print, make copies and changes. Get yours at Boundless - LO. "Boundless." CC BY-SA BY-SA 3.0http:// Working Capital Management Which of the following is a reason to always have cash on hand? A) All of these answers. B) It increases a company's liquidity. C) It allows the company to meet its obligations without incurring avoidable losses. D) It can be used immediately to perform economic actions, such as paying outstanding debts.

Free to share, print, make copies and changes. Get yours at Working Capital Management The sum of cash revenues and expenditures over a period of time. A) Cash B) Assets C) Cash Flow D) Account Receivables

Free to share, print, make copies and changes. Get yours at Boundless Learning. "Boundless." CC BY-SA BY-SA 3.0http:// Working Capital Management The sum of cash revenues and expenditures over a period of time. A) Cash B) Assets C) Cash Flow D) Account Receivables

Free to share, print, make copies and changes. Get yours at Working Capital Management Which of the following statements regarding the cash flow cycle is correct? A) The cash flow cycle is also called the "cash conversion cycle" (CCC). B) The cash conversion cycle is directly observed from a business's cash flows. C) The cash conversion cycle is written to analyze firms that conducts its business solely using cash. D) All of these answers.

Free to share, print, make copies and changes. Get yours at Boundless - LO. "Boundless." CC BY-SA BY-SA 3.0http:// Working Capital Management Which of the following statements regarding the cash flow cycle is correct? A) The cash flow cycle is also called the "cash conversion cycle" (CCC). B) The cash conversion cycle is directly observed from a business's cash flows. C) The cash conversion cycle is written to analyze firms that conducts its business solely using cash. D) All of these answers.

Free to share, print, make copies and changes. Get yours at Working Capital Management A company has average inventory of $10 million and COGS of $15 million. Its average accounts receivable is $1 million and it had $3 million in credit sales. Its average accounts payable is $1.5 million and it had $10 million in purchases. What is its CCC? A) days B) days C) D) 365 days

Free to share, print, make copies and changes. Get yours at Boundless - LO. "Boundless." CC BY-SA BY-SA 3.0http:// Working Capital Management A company has average inventory of $10 million and COGS of $15 million. Its average accounts receivable is $1 million and it had $3 million in credit sales. Its average accounts payable is $1.5 million and it had $10 million in purchases. What is its CCC? A) days B) days C) D) 365 days

Free to share, print, make copies and changes. Get yours at Working Capital Management Which of the following is not a component included in a cash budget? A) Depreciation expense. B) Payments for mergers and acquisitions. C) Purchases of assets. D) Income taxes paid.

Free to share, print, make copies and changes. Get yours at Boundless - LO. "Boundless." CC BY-SA BY-SA 3.0http:// Working Capital Management Which of the following is not a component included in a cash budget? A) Depreciation expense. B) Payments for mergers and acquisitions. C) Purchases of assets. D) Income taxes paid.

Attribution Wikipedia. "Cash conversion cycle." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Cash_conversion_cycle Wiktionary. "retail." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/retail Wiktionary. "balance sheet." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/balance+sheet Wiktionary. "cash flow." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/cash+flow Wikipedia. "Cash conversion cycle." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Cash_conversion_cycle Wikipedia. "Credit Sales." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Credit%20Sales Wikipedia. "Cash." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Cash Wikipedia. "Liquidity." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Liquidity Wiktionary. "liquidity." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/liquidity Wiktionary. "money market." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/money+market Wikipedia. "Dividend." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Dividend Wikipedia. "Budget." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Budget Wikipedia. "Cash flow statement." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Cash_flow_statement Wikipedia. "Accounts receivable." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Accounts_receivable Wikipedia. "stockholders." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/stockholders Wikipedia. "mergers and acquisitions." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/mergers%20and%20acquisitions Free to share, print, make copies and changes. Get yours at Working Capital Management