Learn current asset management strategies from a Certified Public Accountant (CPA)
What you will learn
Be able to explain current asset management strategies and why they are important
Describe cash management strategies
Analyze accounts receivable management strategies
Apply inventory management strategies
Discuss marketable securities management
Explain just in time inventory and its pros and cons
Description
This course will discuss how to manage current assets from a corporate finance perspective.
It will include many example problems, some in presentation format, some using Excel worksheets. Each Excel problem will include a downloadable Excel workbook having at least two tabs, one with the answer, another with a preformatted worksheet you can populate along with the step-by-step instructional videos.
Current asset classes we will consider include cash, accounts receivable, inventory, and marketable securities.
Balancing the asset mix between current assets and long-term assets is critical and helps a company maintain a safe level of liquidity, while maximizing profitability.
Cash management is at the heart of a good current asset strategy, cash being part of every business cycle. Sufficient cash will be needed to pay out obligations as they become due.
Collecting on accounts receivable efficiently can help increase cash flow. Company may use strategies like cash discounts to increase accounts receivable turnover. When using cash discounts, a company needs to compare the benefit of increased cash flow to the cost of the discount.
Finding the ideal level of inventory turnover will also improve performance greatly. A reduction in the period of time inventory is held can reduce holding costs and lesson the chance of spoilage or obsolescence.
We will discuss the concept of a just in time inventory system.
Content
Presentations – Management of Current Assets
Practice Probs – Management of Current Assets
Excel Probs – Management of Current Assets
What you’ll learn
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Define the concept of current assets and their significance in corporate finance.
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Analyze the different classes of current assets, including cash, accounts receivable, inventory, and marketable securities.
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Evaluate the balance between current assets and long-term assets to optimize liquidity and profitability.
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Apply cash management strategies to effectively monitor and enhance cash flow in a corporate setting.
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Implement efficient accounts receivable collection techniques to improve cash flow and reduce outstanding balances.
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Assess and optimize inventory turnover to minimize holding costs and mitigate risks of spoilage or obsolescence.
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Examine the concept and benefits of a just-in-time (JIT) inventory system in streamlining operations and minimizing inventory levels.
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Utilize Excel worksheets to solve practical problems related to current asset management and cash flow analysis.
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Analyze the impact of current asset management decisions on financial stability and profitability.
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Synthesize key principles and strategies to develop an effective current asset management plan aligned with organizational goals.
This course includes:
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7 hours on-demand video
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1 article
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16 downloadable resources
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Access on mobile and TV
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Certificate of completion
