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  • Fundamentals of Finance: Ignacio Lezaun English Edition 2021

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    Elias Macher Carpena
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    This document provides an overview of Unit 3 of a course on fundamentals of finance. The unit focuses on working capital management. It lists the unit objectives and covers topics like managing liquidity, accounts receivable, accounts payable, and inventory. It also defines working capital management and financing. Tools for cash management like financial budgets, treasury forecasts, and liquidity positions are outlined along with their purposes, products, techniques, reliability, and horizons. Finally, an exercise is described that involves reading a case study on Druthers Forming Limited and answering a question as Brad MacDougall, recommending appropriate actions and justifying them.

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    This document provides an overview of Unit 3 of a course on fundamentals of finance. The unit focuses on working capital management. It lists the unit objectives and covers topics like managing liquidity, accounts receivable, accounts payable, and inventory. It also defines working capital management and financing. Tools for cash management like financial budgets, treasury forecasts, and liquidity positions are outlined along with their purposes, products, techniques, reliability, and horizons. Finally, an exercise is described that involves reading a case study on Druthers Forming Limited and answering a question as Brad MacDougall, recommending appropriate actions and justifying them.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    25 views9 pages

    Fundamentals of Finance: Ignacio Lezaun English Edition 2021

    Uploaded by

    Elias Macher Carpena
    This document provides an overview of Unit 3 of a course on fundamentals of finance. The unit focuses on working capital management. It lists the unit objectives and covers topics like managing liquidity, accounts receivable, accounts payable, and inventory. It also defines working capital management and financing. Tools for cash management like financial budgets, treasury forecasts, and liquidity positions are outlined along with their purposes, products, techniques, reliability, and horizons. Finally, an exercise is described that involves reading a case study on Druthers Forming Limited and answering a question as Brad MacDougall, recommending appropriate actions and justifying them.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 9

    Ignacio Lezaun

    English edition
    2021

    Fundamentals of Finance

    1
    2

    Contents of the course

    1. The role of the Chief Financial Officer


    2. Statement of cash flows
    3. Working capital management
    4. Short-term finance instruments
    5. The time value of money
    6. Conclusions

    11/20/2021
    Unit 3: Working Capital 3

    Management UNIT 3

    OBJECTIVES
    1. Background
    2. Managing and Measuring Liquidity
    3. Managing Accounts Receivable
    4. Managing Accounts Payable
    5. Managing Inventory
    6. Working Capital Management
    7. Working Capital Financing
    11/20/2021
    UNIT 3

    3.6 Working capital management


    3.6.2 Cash Management
    Instruments to manage the 5

    treasury

    ◼ Financial budget: to carry out the financial planning of the


    company for a period of two or three years

    ◼ Annual treasury forecast: very necessary to anticipate liquidity


    needs and to be able to cover them in advance, facilitating bank
    negotiation

    ◼ Liquidity position: used to manage the daily cash situation


    Financial budget Treasury forecast Liquidity position
    Treasury planning,
    Purpose Strategic planning Control of liquidity
    Bank negotiation
    Monitoring by bank of
    Financing and collections and
    Products Capital need investments payments

    Projected financial Direct and indirect


    Technique Confirmed operations
    statements method
    Reliability Orientative Estimation and forecast Certainty

    Horizon 3 years 1 year 10/15 days


    Temporal detail
    Annual Quarterly/monthly Daily

    TEMA 3: Gestión del Circulante I 6


    7

    UNIT 3

    Unit 3: Working Capital Management

    Exercise

    11/20/2021
    Exercise: Druthers Forming Limited
     There is a case study in the resources folder on ADI
     Instructions:
     Read through the study carefully
     Answer the following question (submission on ADI, as usual):

    As Brad MacDougall, do whatever analysis and make whatever


    recommendation(s) you deem appropriate. Fully support and justify your
    answer.

    8
    Exercise: Druthers Forming Limited

    As Brad MacDougall, do whatever analysis and make whatever


    recommendation(s) you deem appropriate. Fully support and justify your
    answer.

    What tools did you use?


    How did you structure the analysis?

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