Balance Sheet Management: Squeezing Extra Profits and Cash from Your Business

Megamergers: Corporate America's Billion-Dollar Takeovers by Kenneth M. Davidson

Balance Sheet Management: Squeezing Extra Profits and Cash from Your Business
By Morris A. Nunes
2003/07 - Beard Books
1587981920 - Paperback - Reprint - 304 pp.
US$34.95

This solid and fundamental book will be of widespread interest to managers looking for original perspectives on problem solving and improving their business methods.

Publisher Comments

Categories: Banking & Finance

This title is part of the Smart Management list.

Building and maintaining a sound balance sheet is pivotal for the continued success of any company. Nunes demonstrates how sound management of assets, liabilities, and equity is the dynamic ingredient of a company's progress. In Balance Sheet Management, he provides an overall strategy to promote efficient operating profitability, where earnings will be of tangible quality. The development of management concepts is the underpinning within which are 12 tactical chapters, each with its own theme. Some of the areas covered are: successful cash management, precision in inventory adequacy, controlling pitfalls in credit extension, streamlining accounts receivable collection, systematic management of fixed assets, and mastering capital objectives, to name a few.

From Book News, Inc.:

Viewing the balance sheet as a company's launch pad, a Falls Church, VA-based attorney and financial consultant applies it as a framework for cash management via a clearly enumerated "budgeted business plan." Lacks references. First published by John Wiley, of which Beard Books is an imprint. Annotation Š2003

Morris A. Nunes is an attorney in private practice in Falls Church, Virginia, with over 25 years of experience. His practice is concentrated in business and associations, real estate, taxation, and financial matters. He holds a B.A. from the University of Pennsylvania and a B.B.S. from the Wharton School, in addition to a law degree from Georgetown University. He serves as an Adjunct Professor at Catholic University's Columbus School of Law and at Georgetown University Law Center. He is also the author of five books on business and legal subjects and numerous articles.

Other Beard Books by Morris A. Nunes:

The Right Price for Your Business

1.	OVERVIEW AND UNDERPINNING: DEVELOPING MANAGEMENT CONCEPTS	1
	Framework of Funding Needs 1 Profits: The Framework Capstone 3 Pyramidal Symmetry 4 The Information Network 5 Better Statement Formatting 10 Keeping Ahead of Results 12 Other Forecast Methods 17 Internal Audit as a Balance Wheel 18 Problem and Success Pinpointing 20
2.	SECRETS OF SUCCESSFUL CASH MANAGEMENT	25
	Foundation for Cash Accounts Policy 25 General Purpose/Central Accounts 26 Collecting Accounts 27 Disbursement Accounts 32 Payroll Disbursements 33 The Magic of Float 34 Short-Term Investments 36 Cash Parking Alternatives 39 Foreign Exchange 44 Cash Budgeting 47 Weaving the Cash Budget 48 Cash Projection and Monitoring 52
3.	CONTROLLING PITFALLS IN CREDIT EXTENSION	55
	The Subject 56 Is it Credit? 56 Credit -- Yes or No? 60 How Much Credit? 60 Who Gets Credit? 60 Information Collection 62 Non-Financial Attributes -- Specific Account Treatment 64 Reliability 68 Financial Attributes -- Specific Account Treatment 70 Line of Credit 74 Modifications 75
4.	ACTION TECHNIQUES FOR MANAGING ACCOUNTS RECEIVABLE	77
	Billing Design 77 The Billing Process 80 Cash Discount Policy 83 Account Monitoring 86
5.	STREAMLINING ACCOUNTS RECEIVABLE COLLECTION	95
	Collection Personnel 95 Internal Collection Activities -- Preliminaries 98 Internal Collection Activities -- Tactics 99 Concrete Protective Tactics 101 External Collection -- Alternatives 102 Credits 109 Bad Debts Policy 110 Dealing with Customer Bankruptcies 111 Credit and Collections Summary 112
6.	PRECISION IN INVENTORY ADEQUACY	113
	To Have or Not to Have 114 The Conflicts 115 Policy 116 Policy and Financial Responsibility 117 Inventory Costs 119 Carrying Costs 119 Stockout Costs 121 Safety Stock and Stockout Risk 122 Efficient Stock Risk 124 Accounting and Valuation 126 Valuation Methods 127
7.	PRECISION IN INVENTORY REPLENISHMENT	129
	Inventory Budgeting 129 Reorder Points 132 Time Period 135 Economic Order Quantity (EOQ) 136 Volume Discounts and Order Quantity 138 Carload Order Quantity (COQ) 138 Inventory Adjusted COQ 141 Building the Inventory Budget 143 Inventory Item Performance Review 147 Alternative Inventory Strategies 149 Emphasizing the Demand Connection 150
8.	INSURANCE: ESSENTIAL PROFIT CONSERVATION TECHNIQUES	153
	What Insurance Coverage? 153 Risk Identification 154 Cost Assignment 156 Risk Classification 161 Risk Reduction 164 Risk Acceptance 170 Employee Benefits: Selection and Cost Control 171
9.	SYSTEMATIC MANAGEMENT OF FIXED ASSETS	175
	Acquisition Format 175 Asset Objectives 176 Asset Classification 176 Value Assignment 177 Cost Assignment 179 Asset Evaluation 180 Organizing the Analysis 184 Asset Depreciation 190 Asset Monitoring 194
10.	MAXIMUM VALUE FROM THE BANKING RESOURCE	197
	Choice of Bank 197 Banking Services Checklist 200 One Bank or Several? 202 Establishing the Relationship 203 Loan Arrangement Tactics 204 Conflicting Perspectives 210 Loan Molding Strategies 210 Prepayment and Rule of 78's 212 Getting Larger Loans 214
11.	PRIME SOURCES AND USES OF BANK DEBT ALTERNATIVES	217
	Objectives 217 Concepts 218 Application -- Position and Capture 219 Commercial Paper 220 Receivables Financing 221 Inventory Financing 222 Leasing 227 Lease Terms 228 Summary -- Choice of Financing 229
12.	MASTERING CAPITAL OBJECTIVES	231
	Capital Structure Elements 231 Capital Structure Objectives 233 Cost of Capital 234 Component Cost of Capital 234 Average Cost of Capital 239 Marginal Cost of Capital 241 Leverage 244 Optimum Capital Structure 245
13.	GETTING THE RIGHT CAPITAL AT THE RIGHT TIME	247
	Market Definition 248 Investor Motivations 249 Investor Motivation Tally 250 Tactical Alternatives -- Debt 251 Tactical Alternatives -- Equity 253
14.	DEVELOPING THE BUDGETED BUSINESS PLAN	265
	Planning the Plan 265 Objective 266 Organization 266 Motivation 267 Accountability 267 Variable Costs 269 Plan Components 272 Plan Example -- Profit and Sales Objective 273 Plan Example -- Budget Formulizations 276 Budget Evaluation 281 Capital Budget 282 Monitoring Results 282 Final Word 284
	INDEX	285

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