1. 1 PEMBELANJAAN PERUSAHAAN LECTURE 2 – NET WORKING CAPITAL

2. PP/MB-IPB/10 2 Outline Tracing Cash and Net Working Capital The Operating Cycle and the Cash Cycle Some Aspects of Short-Term Financial Policy The Cash Budget A Short-Term Financial Plan

3. PP/MB-IPB/10 3 Sources and Uses of Cash Balance sheet identity (rearranged) NWC + fixed assets = long-term debt + equity NWC + fixed assets = long-term debt + equity NWC = cash + other CA – CL NWC = cash + other CA – CL Cash = long-term debt + equity + CL – CA other than cash – fixed assets Cash = long-term debt + equity + CL – CA other than cash – fixed assetsSources Increasing long-term debt, equity or current liabilities Increasing long-term debt, equity or current liabilities Decreasing current assets other than cash or fixed assets Decreasing current assets other than cash or fixed assetsUses Decreasing long-term debt, equity or current liabilities Decreasing long-term debt, equity or current liabilities Increasing current assets other than cash or fixed assets Increasing current assets other than cash or fixed assets

4. PP/MB-IPB/10 4 The Operating Cycle Operating cycle – time between purchasing the inventory and collecting the cash from selling the inventory Inventory period – time required to purchase and sell the inventory Accounts receivable period – time required to collect on credit sales Operating cycle = inventory period + accounts receivable period

5. PP/MB-IPB/10 Untuk melihat file lengkapnya silahkan menghubungi kami di www.mb.ipb.ac.id www.mb.ipb.ac.id