Cash management is one of the key areas of working capital management. Apart from the fact that the most liquid current asset, cash is the common denominator to which all current assets can educed because the other major liquid assets, that is, receivables and inventory get eventually erupted into cash. This underlines the significance of cash management be present Chapter gives a detailed account of the problems involved in managing cash. The Section outlines the motives for holding cash followed by the objectives of cash management Section two. Section 3 presents a discussion of the factors determining cash needs. The ches to derive optimal cash balances, namely, cash management models and cash budgets examined in depth in Section 4. The basic strategies for efficient management of cash are the -rnarter of Section 5. We have explained specific techniques to manage cash subsequently. remainder of the chapter is .devoted to the discussion of marketable securities. The Chapter includes with a summary of the major points.

Share This