Chapter 9 Cash and marketable Securities Management 9-1
9-1 Chapter 9 Cash and Marketable Securities Management
Cash and Marketable Securities Management Motives for Holding Cash Speeding Up Cash Receipts S-l-o-W-i-n-g D-o-W-n Cash Payouts Electronic Commerce 9-2
9-2 Cash and Marketable Securities Management Motives for Holding Cash Speeding Up Cash Receipts S-l-o-w-i-n-g D-o-w-n Cash Payouts Electronic Commerce
Cash and Marketable Securities Management Outsourcing Cash Balances to maintain Investment in Marketable Securities 9-3
9-3 Cash and Marketable Securities Management Outsourcing Cash Balances to Maintain Investment in Marketable Securities
Motives for Holding Cash Transactions Motive a to meet payments arising in the ordinary course of business Speculative Motive a to take advantage of temporary opportunities Precautionary Motive- to maintain a cushion or buffer to meet unexpected cash needs 9-4
9-4 Motives for Holding Cash Transactions Motive -- to meet payments arising in the ordinary course of business Speculative Motive -- to take advantage of temporary opportunities Precautionary Motive -- to maintain a cushion or buffer to meet unexpected cash needs
Cash Management System Collections Disbursements Marketable securities investment Control through information reporting Funds flow +E Information flow 9-5
9-5 Cash Management System Collections Disbursements Marketable securities investment Control through information reporting = Funds Flow = Information Flow