About This Chapter
Short-Term Financing & Planning - Chapter Summary and Learning Objectives
Businesses frequently have to make plans to get themselves through the next few months so they will still be around to work toward long-term goals. These comprehensive video lessons explore how businesses manage and track their cash flows and secure short-term financing to achieve short-term goals. This chapter covers the following topics:
- Tracking current cash supplies and net working capital
- Determining how long it takes to profit from investments in processes and inventory
- Defining the cash budget
- Understanding how short-term loans work
|Tracking Cash & Net Working Capital||Discuss how to track net working capital and cash.|
|Operating Cycle & Cash Cycle: Definition & Calculations||Define and calculate the operating and cash cycles.|
|Cash Budget: Definition & Examples||Take a look at cash and sales collections, cash balance and cash outflows.|
|Short-Term Borrowing for Unsecured & Secured Loans||Learn about short-term borrowing on secured and unsecured loans.|
1. Tracking Cash & Net Working Capital
How can businesses track their cash flow and understand how their assets and liabilities align? In this lesson, we'll examine how to track cash flow, including the calculation of net working capital and the accrual method of accounting.
2. Operating Cycle & Cash Cycle: Definition & Calculations
How can a business owner know how long it takes to make money on purchased supplies or products? In this lesson, we'll examine the two different methods for calculating the length of time it takes to make a profit: the operating cycle and the cash conversion cycle.
3. Cash Budget: Definition & Examples
In this lesson you will learn about cash budgets and the various components of a budget. You will also be provided with an example of a simple cash budget.
4. Short-Term Borrowing for Unsecured & Secured Loans
Sometimes businesses need to borrow money to grow, but there are many different types of business loans available. In this lesson, we'll examine different types of business loans, including short-term, long-term, unsecured, and secured.
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Other chapters within the Finance 101: Principles of Finance course
- Introduction to Corporate Finance
- Financial Statements, Taxes & Cash Flow
- Financial Statement Basics
- Long-Term Financial Planning & Growth
- Introduction to Valuation Methods
- Discounted Cash Flow Valuation
- Interest Rates & Bond Valuation
- Stock Valuation
- Net Present Value & Investment Basics
- Capital Investment Decisions
- Accounting Risk & Return
- Return, Risk, & the Security Market Line
- Options & Corporate Finance
- Cost of Capital
- Financial Leverage & Capital Structure
- Dividends & Dividend Policy
- Cash & Liquidity Management
- Credit & Inventory Management
- International Corporate Finance
- Studying for Finance 101