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Financial Management: Case Study LGAOP01
Financial Management: Case Study LGAOP01
Financial Management: Case Study LGAOP01
Invoicing/Receivable Vendor Bank (it is where the Account Company Confirmation Official Receipt
(Issuance of Invoice) receipt deposited)
Cash Outflows
BANK
Cash Management Process
Treasury
Invoicing/Receivable Payable Payroll
Journal Entry
Cash Purchase
Cash Management
General Ledger
Cash Receipts
Bank
Bank Reconciliation
Cash Management
Process
RECEIVABLE
• IT IS WHEN THE COMPANY PLACE ITS INVOICE TO THE CLIENTS
FOR COLLECTION
RECEIPTS
• IT IS WHEN THE CLIENT PLACED A CHECK OR ISSUE CHECK
AGAINST THE INVOICE ISSUED
BANK DEPOSIT
• IT WHEN THE COMPANY SHALL DEPOSIT THE CHECK TO THE
BANK ACCOUNT/ WITH. THE MAXIMUM DAYS OF CLEARING FOR
INTER- BANK IS ABOUT 3 DAYS.
CONFIRMATION- BANK STATEMENT
• WHEN THE DESPOSIETED CHECK CLEARED THROUGH , OR
CREDITED TO THE COMPANY BALANCES, THE COMPANY WILL
ISSUE A LETTER CONTIANING THE OFFICIAL RECEIPT,
INFORMING THAT THE AMOUNT ALREADY CREDITED.
Cash Management
Process (con’t)
PAYABLES- SUPPLIERS AND OTHERS ALL SUPPLIER
• RAISED THEIR INVOICES FOR COLLECTION. THUS ALSO THE
COMPANY SHALL SET THE PAYABLE SET UP FOR PAYMENTS
PAYROLL AND OTHER EXPENDITURE
• BASEDON THE TOTAL COLLECTED PER MONTH. THE COMPANY
SHALL ACCOMMODATE THE PAYMENTSALARIES AND OTHER
EXPENDITURES.THIS IS WERE THE BUDGETTING SHALL SET INTO
PLACE FOR THE PROPER DISTRIBUTION OF THE AVAILABLE
FUNDS IN THE BANKS
BANKS
• IS AN INSTITUTION WHEREIN COMPANY PUT ALL THE RESOURCE
COLLECTION FOR FUTURE NEEDS AND FOR THE COMPANY'S
OBLIGATION
• AND ALL ITS FUTURE PLANS.
Capital Structure
• IT IS HOW THE FIRM FINANCES ITS OVERALL
OPERATION AND GROWTH
• BY USING DIFFERENT SOURCES OF FUND. DEBTS
COMES IN THE FORM OF BONDS