Csh Mgmt Formulas Flashcards
1
Q
AR Mgmt (4)
A
AR TO in Days = Daily Sales * DSiR
Chg in AR = Chnge in VC - (Chg in avg Collection Period/Days in Yr)
CoChg in AR = Chg in AR (opp cost)
Benefit / Loss from Change = CM - CoChng in AR
2
Q
Inventory Mgmt
A
EOQ = Sqrt 2(FC * Dmd)/carry cost
inv cost = pc + oc + cc + s.stk
reorder point = (avg time demand * Lead time) + Safety stock
Safety Stock = Exp Stk out + carry cost
3
Q
Cash Mgmt (2)
A
EOQ
^inc cash collection = Daily cr Sales * Red Flt * Opp cost
4
Q
Short-term Fin. (5,9)
A
Cost of not taking Discount
Simple Loan (SL)
- SL Amt
- IE
- Eff Rate
Discount Loan (DL)
- DL
- Eff Rate
Comp Bal Loan (CBL)
- CBL
- Eff Rate
LoC Cost
