Understanding Cash Flow

Front Cover
PROFITS ARE AN OPINION, BUT CASH IS A FACT.

Understanding CASH FLOW

If the term "cash flow" has always remained uncomfortably vague in your mind, Understanding Cash Flow will give you, quickly and simply, a firm grasp of this crucial index of a company's health and direction. It covers, in detail, the process, the terminology, and the internal and external players in the flow of cash through a company. You'll learn:

  • The fundamentals of cash management and how it affects the quality of a company's earnings
  • How to read cash flow statements
  • How cash balances are analyzed and monitored—including internal controls over cash receipts and disbursements, plus bank account reconciliation and activity analysis
  • How to avoid the pitfalls of granting credit—evaluating customer credit, sources of credit information, and overall credit policy
  • How to prevent fraud and waste
  • And much more!

Understanding Cash Flow is a part of the new Wiley series, Finance Fundamentals for Nonfinancial Managers—designed to serve managers, owners, investors, students and others by explaining clearly and concisely what they need to know about important areas of cash flow management. Other titles in the series will cover income statements, return on investment, budgeting, and balance sheets.

 

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Contents

Introduction to Cash Management Fundamentals of Cash Flow
1
Liquidity Solvency and Cash Flow
7
The Impact of Budgeting on Cash Flows Effects of Budgeting on Cash Flows
19
Budgeting Cash Receipts and Disbursements
29
Using Probabilities to Budget Cash Receipts and Disbursements
35
Avoiding Pitfalls in Granting Credit Cash Flow Management
45
Cash Collection and Delayed Payment Techniques
53
An Effectiveness Measure for Managements Investment of Idle Cash
63
Fraud and Embezzlement Effects of Internal Control on Cash Management
119
Internal Controls to Prevent Losses and Errors
129
Maintaining Control Over Cash
139
Cash Controls in Small Companies
151
Profits Are an Opinion But Cash Is a Fact Financial Statements and Cash Flow
159
The Statement of Cash Flows Cash from Operating Activities
191
The Statement of Cash Flows Cash from Investing and Financing Activities
203
Comparative Analysis of the Statement of Cash Flows
213

Hedges Options and Derivatives
75
Understanding Float and Lockbox Systems
83
Dealing with the Bank Banking Relationships
91
Account Analysis and Other Banking Services
99
Ratio Analysis of the Statement of Cash Flows
227
Index
243
About the Authors
246
Copyright

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