Page 146 - DCOM505_WORKING_CAPITAL_MANAGEMENT

Tanima Dutta, Lovely Professional University Unit 9: Cash Flows Forecasting and Treasury Management

Unit 9: Cash Flows Forecasting and Treasury Management Notes

CONTENTS
Objectives
Introduction

9.1 Objectives of Cash Forecasting
9.2 Cash Forecasting Horizons
9.2.1 Long-range Forecasts
9.2.2 Medium-range Forecasts
9.2.3 Daily Cash Forecasts

9.3 Methods of Financial Forecasting
9.3.1 Spot Method
9.3.2 Proportion of another Account
9.3.3 Compounded Growth
9.3.4 Multiple Dependencies
9.4 Forecasting Daily Cash Flows

9.5 Hedging Cash Balance Uncertainties
9.5.1 Holding a Stock of Extra Cash
9.6 Reasons for Cash Flow Problems
9.7 Treasury Management
9.7.1 Treasury Risk Management

9.7.2 Functions of the Treasury Department
9.8 Summary
9.9 Keywords
9.10 Review Questions
9.11 Further Readings

Objectives

After studying this unit, you will be able to:
 Know the objectives of cash forecasting
 Discuss the cash forecasting horizons

 Identify the methods of financial forecasting
 Explain the forecasting daily cash flows
 Describe the hedging cash balance uncertainties
 Identify the reasons for cash flow problems
 Discuss the management of treasury

LOVELY PROFESSIONAL UNIVERSITY 141