Abstract
One of the everyday jobs of the treasurer is to manage the cash, and flow of funds through the organization. If the amount or receipt and collection activities are out of control, the entire firm may face bankruptcy. There is an old saying, “If you pay attention to the pennies, the dollars will take care of themselves.” In this spirit, this paper looks at taking care of the daily amounts of cash flowing through the firm in a systematic fashion. The purpose is to understand the importance of the inter-relationships involved and to be able to measure the amount and speed of the cash flow. Once something can be measured, it can be managed.
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References
Gallinger, G.W. and Healey, P.B. (1991). Liquidity Analysis and Management, 2nd edn. Reading, MA: Addison-Wesley.
Maness, T.S. and Zietlow, J.T. (1998). Short Term Financial Management, Fort Worth, TX: The Dryden Press.
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© 2013 Springer Science+Business Media New York
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Finnerty, J.E. (2013). Working Capital and Cash Flow. In: Lee, CF., Lee, A. (eds) Encyclopedia of Finance. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-5360-4_12
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DOI: https://doi.org/10.1007/978-1-4614-5360-4_12
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Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4614-5359-8
Online ISBN: 978-1-4614-5360-4
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