Corporate Finance #6 Management of Current Assets

0

Corporate Finance #6 Management of Current Assets, Learn current asset management strategies from a Certified Public Accountant (CPA)

This course will discuss how to manage current assets from a corporate finance perspective.

It will include many example problems, some in presentation format, some using Excel worksheets. Each Excel problem will include a downloadable Excel workbook having at least two tabs, one with the answer, another with a preformatted worksheet you can populate along with the step-by-step instructional videos.

Current asset classes we will consider include cash, accounts receivable, inventory, and marketable securities.

Balancing the asset mix between current assets and long-term assets is critical and helps a company maintain a safe level of liquidity, while maximizing profitability.

Cash management is at the heart of a good current asset strategy, cash being part of every business cycle. Sufficient cash will be needed to pay out obligations as they become due.

Collecting on accounts receivable efficiently can help increase cash flow. Company may use strategies like cash discounts to increase accounts receivable turnover. When using cash discounts, a company needs to compare the benefit of increased cash flow to the cost of the discount.

Finding the ideal level of inventory turnover will also improve performance greatly. A reduction in the period of time inventory is held can reduce holding costs and lesson the chance of spoilage or obsolescence.

We will discuss the concept of a just in time inventory system.




Show full profile

Online Tutorials

Online Tutorials is a website sharing online courses, and free online tutorials for free on a daily basis. You can find the best free online courses and thousands of free online courses with certificates to take your knowledge to the next level with the free courses.

We will be happy to hear your thoughts

      Leave a reply

      Courses Will Be Sent To Your Inbox
      Join 20,000+ Subscribers

      Subscribe to our mailing list and get paid courses for free direct to your email inbox.

      Online College Courses
      Logo
      Register New Account
      Reset Password