Chapter 18: Short-term Financial Analysis and Planning

The following sections are included:

• Introduction

• The Components of Working Capital

• The Concept of Cash Flow

• Cash Flow versus Funds Flow

• Organizing for Short-term Financial Planning

• Short-term Financial Planning Principles

• The Cash Flow Cycle and Its Calculation

• Cash Flow Forecasting, Budgeting, and Planning

• The Cash Budget

• Demand-Driven, Capital-Driven, and Cost-Driven Cash Budgets

• Users of Cash Forecasts and Business Plans

• Planning Horizons and Time Intervals of Cash Budgets

• From Forecasting to Budgeting to Planning

• Summary

• Appendix 18A — Time-Series Components of Sales

  • The Contribution of Each Component

  • Interpretation