Chapter 7 Financial assets Irwin/McGraz-Hill TThe McGraw-Hill Companies, Inc, 1999
?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 7 Financial Assets
How Much Cash Should a business Have? Every business needs enough cash to pay its bills Irwin/McGraz-Hill TThe McGraw-Hill Companies, Inc, 1999
?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill How Much Cash Should a Business Have? $ Every business needs enough cash to pay its bills!
How Much Cash Should a business Have? Financial Assets Cash Receivables Short-term Investments Irwin/McGraz-Hill TThe McGraw-Hill Companies, Inc, 1999
?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill How Much Cash Should a Business Have? Cash Short-term Investments Receivables Financial Assets
How Much Cash Should a business Have? Collections from Cash(and cash customers equivalents) Cash Accounts payments receivable 拘 Investments xcess ?cash are sold as is invested cash is temporarily. needed Marketable securities (short-term investments)」 Irwin/McGraz-Hill Hill Companies, Inc, 1999
?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill How Much Cash Should a Business Have? Accounts receivable Marketable securities (short-term investments) Cash (and cash equivalents) Collections from customers Cash payments 揈 xcess?cash is invested temporarily. Investments are sold as cash is needed
The valuation of financial assets Basis for valuation in Type of Financial Asset the balance sheet Cash(and cash equivalents)Face amount Short-term investments Current market value (marketa ble securities Receivables Net realizable value Estimated collectible amount Irwin McGraw-Hill TThe McGraw-Hill Companies, Inc, 1999
?The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The Valuation of Financial Assets Type of Financial Asset Basis for Valuation in the Balance Sheet Cash (and cash equivalents) Face amount Short-term investments (marketable securities) Current market value Receivables Net realizable value Estimated collectible amount