CASH MANAGEMENT.pptx cash management's h

Cash management

1. Institute Of Management Studies, Roorkee TOPIC- CASH MANAGEMENT SUBMITTED BY- IKRA SHIRIN KHAN COURSE- BBA 5 TH SEM

2. CASH MANAGEMENT Cash management is the process of managing cash inflows and outflows - Cash Management is the process of collecting and managing cash flows. - Cash Management refers to optimum utilization of cash to ensure maximum liquidity and maximum profitability.

3. WHAT Is Cash

4. CASH MANAGEENT- Sources Of Cash

5. MOTIVES FOR HOLDING CASH TRANSACTION MOTIVE – A firm needs cash for making transactions in the day to day operations. Cash Is Required In Business To Meet Operational Expenses like Utility Bill, Salary And Wages, Travelling Expenses, Repair And Maintenance etc. PRECAUTIONARY MOTIVE: Cash Is Required as provision to meet unexpected contingencies in shorter period of time SPECULATIVE MOTIVE: Cash Should also be kept to grab profitable opportunities of investment or profit booking as and when the prices are low or favorable

6. IMPORTANCE OF CASH MANAGEMENT Cash management deals with the Following :- CASH INFLOWS & OUTFLOWS CASH FLOWS WITHIN THE FIRM CASH BALANCE HELD BY THE FIRM AT A POINT OF TIME

7. FUNCTIONS OF CASH MANAGEMENT RECEIVABLES MANAGEMENT INVENTORY MANAGEMENT PAYABLES MANAGEMENT SHORT TERM INVESTMENT FORECAST & PLANNING

8. TOOLS FOR CASH CONTROL CASH BUDGET- The Cash Budget Is a Budget prepared to estimate the cash inflows and outflows during a specific period of time in future. CASH FLOW STATEMENT- The cash flow statement is a financial statement that summarizes the cash inflows and outflows through 3 major activities (Operating, Investing and Financing). RATIO ANALYSIS- Liquidity ratio like Current ratio , Quick ratio and Cash ratio measures the financial strength of company in terms Cash & Marketable Securities available in the company to pay off short term obligations.