This PPT slide, part of the 84-slide Working Capital Management Strategy PowerPoint presentation, outlines 5 foundational concepts essential for effective short-term cash flow management. It begins with the Opening Cash Balance, which is crucial as it establishes the initial cash available at the start of a period. This balance serves as a reference point for measuring all subsequent cash movements, making it vital for setting liquidity targets and planning for immediate cash needs.

Next, the slide discusses Cash Inflows, detailing the importance of accurately forecasting revenue from sales, including the timing and volume of accounts receivable collections. It emphasizes that this element also encompasses expected cash from other sources, such as interest income and asset sales. Accurate predictions in this area are critical for optimizing the cash conversion cycle and ensuring that sufficient funds are available for operational needs.

The third concept, Cash Outflows, focuses on estimating all outgoing payments. This includes operating expenses, cost of goods sold, and capital expenditures. The slide highlights the need for careful management of discretionary spending and debt servicing to avoid cash shortages. Effective tracking of cash outflows is essential for maintaining control over costs and identifying opportunities for cost reduction and efficiency improvements.

Overall, the slide provides a structured approach to understanding cash flow management, emphasizing the interconnectedness of these concepts. For executives, grasping these foundational elements is key to ensuring financial health and operational efficiency on a weekly basis.

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Cash Flow Management Working Capital Management Cost Reduction Cash Conversion Cycle Accounts Receivable Sales