BUSINESS FINANCE教学资料 Lecture 9.pptxVIP

Lecture 9 Short-term Financial Planning Management;Overview of Lecture;Reasons for Holding Cash;Cash versus Liquidity Management;Float and Types;Float - Example;Float Management;Measuring Float - Example;Measuring float - Example;Investing Idle Cash ;How much Cash to hold?;Determining the Target Cash Balance;The BAT Model;The BAT Model;The BAT Model;BAT Model - Example;BAT Model – Example: Setup;The BAT Model- Opportunity costs;The BAT Model – Trading costs;The BAT Model – Total cost;The BAT Model Solution;The Miller-Orr Model;The Miller-Orr Model;The Miller-Orr Model - Example;The Miller-Orr Model - Example;Superiority of the Miller–Orr Model;Granting Credit to Customers (Accounts Receivables);Components of Credit Policy;Cash Flow and Investment in Granting Credit;Terms of Sale;Factors Affecting the Length of Credit Period;Cost of Credit;Change in Credit Policy - Example;Analysing Credit Policy: Effects of Granting Credit;Evaluating a Proposed Credit Policy ;Evaluating a Proposed Credit Policy;Evaluating a Proposed Credit Policy;Evaluating a Proposed Credit Policy;Optimal Credit Policy;Optimal Credit Policy;Collection Policy;Inventory Management;Inventory Management 1: The ABC Approach;Inventory Management 2: Economic Order Quantity;A firm’s inventory is sold off at a steady rate until it hits zero. At that point, the firm restocks its inventory back to some optimal level. Carrying costs are assumed to be directly proportional to inventory levels. Let Q be the quantity of inventory that firm orders each time (i.e. restocking quantity). Average inventory would then just be Q/2. Let CC be the carrying cost per unit per year. Total carrying cost = Average inventory x Carrying costs per unit = (Q/2) x CC Shortage costs If, T = firm’s total unit sales per year and the firm orders, Q units each time, then it will need to place a total of (T/Q) orders. If the fixed cost per order is F, the total restocking cost for the year would be: Total restocki