5 Short Term Financial Mgmt

B. Based on the results of part b's survey, does the company need external funding? According to a survey of part A, the company definitely needs external funds. Cash shortage occurred during the current fiscal year for three months. The month of the deficit is March, April and June, 2004. If there is no external funds to enter the company, you can not use the cash necessary to cover the cost every month after each deficit. If cash is not invested in the company through financing, the company will not be able to pay management, material, lease or income tax.

Corporate finance is a division of a company that handles financial and investment decisions. Corporate finance focuses on maximizing shareholder value through long-term and short-term financial planning and implementation of various strategies. Corporate finance activities include capital investment decisions and investment banking. The company's finance department is responsible for managing and overseeing the company's financial and capital investment decisions. These decisions include whether to make the proposed investment, whether to pay the investment in stocks, liabilities, or both, and whether shareholders should receive dividends. In addition, the finance department manages current assets, current liabilities and inventory management.

Working capital management is an important decision-making field for corporate financial management. Term investment, financial resources to tie finance decisions to the company's overall goals, as well as short-term financial decisions and long-term financial decisions on long-term financial You need to understand how to associate with decisions. (Upadhyay, 1985: 40) Working capital management includes the relationship between the company's short-term assets and their short-term liabilities. The purpose of working capital management is to ensure that the company has sufficient capacity to continue its business and meet future maturity of short-term debt of operating expenses. Working capital management includes management of inventory, accounts receivable, accounts payable, cash, and so on.

The working capital formula shows the short-term current assets remaining after the short-term debt has been settled. It measures short-term liquidity of the company and financial modeling is very important for financial analysis. Financial modeling Financial modeling is performed in Excel to predict the company's financial performance. Overview of financial modeling, its method and its reason 3 The report model links the income statement, the balance sheet, and the cash flow statement. Establishing a more sophisticated financial model for valuation, planning, and management of cash flows Cash flow (CF) is an increase or decrease in the amount owned by a company, institution, or individual. In finance, this term is used to denote the amount (currency) of cash generated or consumed over a period of time. There are various kinds of cash flow, and there are many important uses when operating a business.