Short Term Finacial Decisions

Short-Term Financial Decisions

Research Paper

By

FINC 400

Summer 2011

Table of Contents

1. Purpose (Ariel)

2. Introduction (Mary)

3. Net Working Capital (Mary)

4. Cash Conversion Cycle (Mary)

5. Managing Inventory (Mary)

6. Managing Accounts Receivable (Mary)

7. Managing Receipts and Disbursements (Mary)

8. Spontaneous Sources of Short-Term Financing (Ariel)

9. Unsecured Source of Short-Term Financing (Ariel)

10. Secured Sources of Short-Term Financing (Ariel)

11. Use of Inventory as Collateral (Ariel)

12. Conclusion (Ariel)

Purpose

The purpose of this research paper is to ensure that we understand the different aspects in finance and relate the information to real world situations. During the process of learning the essential elements in finance, we would also use the knowledge, skills, and abilities that we learned in the School of Business as a standard that we should follow to become successful and innovators in the business world. Knowing how to differentiate ourselves by understanding the basics in finance and in different fields will set us apart from others because of the knowledge we have and using what we know in our careers. In every business, finances are very important because it can either make a business successful with the right plan or a failure with the wrong plan.

Introduction

The ability to manage short-term financial needs is critical for a company to remain technically solvent. The finance manger needs to perform quantitative analysis by using statistical and math functions to create the data needed to make the correct financial decisions for the company. To perform this quantitative analysis, the finance manager must possess the knowledge, skills, and abilities needed be able to accurately prepare the analysis. Short term financial management, which is managing short term assets and liabilities, is time consuming and one of the financial manager’s most...