Matakuliah
Tahun
: Manajemen Keuangan 1
: 2009
MANAJEMEN KAS DAN SURAT-SURAT
BERHARGA
Pertemuan 25
Cash and Marketable
Securities Management
Bina Nusantara University
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Liquid Asset Management
CASH- motives for holding cash:
• Transactions: to meet cash needs that
arise from doing business.
• Precautionary: having cash on hand for
unexpected needs.
• Speculative: to take advantage of
potential profit-making situations.
Bina Nusantara University
4
Cash Management
CASH:
• Objectives:
• have enough cash on hand to meet
disbursal needs.
• Minimize investment in idle cash
balances.
Bina Nusantara University
5
Cash Management
Managing Cash Inflow
• Reducing Float can speed up cash receipts.
• Mail Float: length of time from the
moment a customer mails a check until the
firm begins to process it.
• Processing Float: the time required by a
firm to process a check before it can be
deposited in a bank.
Bina Nusantara University
6
Cash Management
Managing Cash Inflow
• Reducing Float can speed up cash receipts.
• Transit float: time required for a check to
clear through the banking system and
become usable funds.
• Disbursing float: occurs because funds are
available in a firm’s bank account until its
payment check has cleared through the
banking system.
Bina Nusantara University
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Cash Management
Managing Cash Inflow
• Lockbox System
Instead of mailing checks to the firm,
customers mail checks to a nearby P.O.
Box.
A commercial bank collects and deposits
the checks.
Bina Nusantara University
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Cash Management
Managing Cash Inflow
• Lockbox System
Instead of mailing checks to the firm,
customers mail checks to a nearby P.O.
Box.
A commercial bank collects and deposits
the checks.
This reduces mail float, processing float
and transit float.
Bina Nusantara University
9
Cash Management
Lockbox System benefits:
• Increased working cash - reduces
time required to convert receivables to
cash.
• Elimination of clerical functions - bank
handles receiving, endorsing, totaling
and depositing.
• Early knowledge of dishonored checks firm learns of customers’ bad checks
faster.
Bina Nusantara University
10
Cash Management
Managing Cash Inflow
• Preauthorized Checks (PACs)
Arrangement that allows firms to create
checks to collect payments directly from
customer accounts.
This reduces mail float and processing
float.
Bina Nusantara University
11
Cash Management
PAC System benefits:
• Highly predictable cash flows.
• Reduced expenses - eliminates billing
and postage costs; reduces clerical
processing costs.
• Customer preference - eliminates
regular billing for customers.
• Increased working cash - dramatically
reduces mail float and processing float.
Bina Nusantara University
12
Cash Management
DTC System benefits:
• Lower levels of excess cash • Reduced expenses - eliminates billing
and postage costs; reduces clerical
processing costs.
• Customer preference - eliminates
regular billing for customers.
• Increased working cash - dramatically
reduces mail float and processing float.
Bina Nusantara University
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Cash Management
Managing Cash Inflow
• Wire Transfers
Moves cash quickly between banks.
Eliminates transit float.
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Cash Management
Managing Cash Outflow
• Zero Balance Accounts (ZBAs)
Different divisions of a firm may write checks
from their own ZBA.
Division accounts then have negative
balances.
Cash is transferred daily from the firm’s
master account to restore the zero balance.
Allows more control over cash outflows.
Bina Nusantara University
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Cash Management
Managing Cash Outflow
• Payable-Through Drafts (PTDs)
Allows the firm to examine checks written
by the firm’s regional units.
Checks are passed on to the firm, which
can stop payment if necessary.
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Cash Management
Managing Cash Outflow
• Remote Disbursing
Firm writes checks on a bank in a distant
town.
This extends disbursing float.
(Discouraged by the Federal Reserve
System)
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Marketable Securities
Considerations
• Financial Risk - uncertainty of
expected returns due to changes in
issuer’s ability to pay.
• Interest rate risk - uncertainty of
expected returns due to changes in
interest rates.
Bina Nusantara University
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Marketable Securities
Considerations
• Liquidity - ability to transform
securities into cash.
• Taxability - Taxability of interest
income and capital gains.
• Yield - Influenced by the previous 4
considerations.
Bina Nusantara University
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