Current Asset Management

Includes management of cash, cash equivalents, accounts receivable and prepaid expenses

Collections and Marketable Management of Inventory

Disbursements Securities Accounts Receivable Management

Float: there are two cash

balances of importance, and the When funds are Accounts Receivable In the inventory decision model
difference between them is being held for other should be thought of we must evaluate the two basic
called float. than immediate as an investment. costs associated with inventory:
Improving collections is also transaction There are three the carrying costs and the
called lockbox system. The purposes, they primary policy ordering costs. Economic
extending disbursements should be converted variables to consider ordering quantity is the most
allows to the company to time from cash into in conjunction with our advantageous amount for the
their payments. The Cost- interest-earning profit objective; credit firm to order each time. A safety
Benefit Analysis can be marketable standards, terms of stock is a level of extra stock
explained as a procedure for securities. trade and collection that is maintained to mitigate
estimating all costs involved policy. risk of stockouts caused by
and possible profits to be uncertainties in supply and
derived from a business demand. Just in Time Inventory
opportunity or proposal. Management is part of a total
Electronic Funds Transfer is a production concept that often
system in which funds are interfaces with a total quality
moved between the store and control program.
the bank. The international cash
management has many
differences from domestic-
based cash management
systems.