Financial Management

the prior year’s income statement

sales projections and the production plan

the cash budget

the cash budget and prior year’s income statement

to break the income statement down into monthly periods

to determine monthly cash receipts

to determine the collection pattern

to allow the firm to anticipate the need for outside funding

the degree to which debt is used in financing the firm

the difference between price and variable costs

the extent to which capital assets and fixed costs are utilized

the difference between fixed costs and the contribution margin

reflects the firm’s commitment to fixed, financial assets

has no impact on the earning of the firm

reflects the amount of debt used in the capital structure of the firm

primarily affects the left side of the balance sheet

their buyers’ forecasts for the coming season

matching sales and inventory levels

decreasing inventory turnover

their investment in capital assets

investors generally prefer to invest short periods of time

government policy maintains this relationship

there is greater risk in long-term bonds

exchange rate fluctuations establish this relationship

is more expensive than the use of collection centers

utilizes local banks to clear local payments made to the collection center

provides more float than collection centers

results in checks being forward to a P.O. box and clearing through local banks

yield

maturity

marketability

maximum investment allowed

prior record of payment

terms of credit

financial stability

current net worth