L MONEY WATCH "?>??: S? :;x&> ? ?:? , :v. . By THEODORE R. DANIELS :M. & Cash management & borrowing in business Poor cash management is the raason why soma owner-man agers of small firma have trouble when they try to borrow money. Those managers fail to forecast and to plan for cas^ needs. Tha resulting business ailment is a "cash crisis." This happens even & whaiiaalas-yolumaa ara goodr? 7r ; : Sound cash management must be practiced if loans are to ba obtained and used profitably. Such management includes knowing the firm's cash flow, forecasting cash needa, planning to borrow at the appropriate time, and substantiating the firm's payback ability. Sound cash management Consists of arranging matters so that current liabilities are provided for as they become due and hence paid promptly. Whan such coordination is not present, the result is a constant "cash crisis," ? TO &W A crrsTs" you shouIcTdetermine now mucn cash ; your firm needs for its normal operations. Then plan your financea : to achieve the;goal. The amount of dash which a business will need differs because all businesses are not alike. Usually, for com fort, five to ten percent of a firm's working capital should be in cash. r In a sense, financial planning is what you anticipate your financial statements will show on a specific date and how you ; Intartd to,g*t thera. A cash forecast wilt Indicate whether or not i ttili plan ot operation If feiaibia, A budgat will indicate tha avalK ? ability of cash at all points of operations*" ^ ? | | || SSSpih Budgeting *\ - " Jpl i 1 ' " - When the subject of budgeting comes up, some owner-man ager* say, "Thara tor the big fellow, I know what my volume Is and v my bank account tells me how much money I have.* These owners fail to realize that budgeting can help to eliminate errors of judg 119 madrlh halt* or made on asaurriptloria rather lhah ft vV" The firsi thing you must know In budging is what you* antt#* | 2 pated expenses are going t?- be for the period being budgeted^ - rThen, hoWmuchJn: salea^pustbe generated Jo pa?|?pe|M j V asfAi^ fttiallv what will be ieft,lVou must fry to determine the MfifrF i and. low points in your operations in order to provide the adequate amOuht of cash. A sales analysis of previous periods will indicate wheh the hlgh and low point# ooour. Hf K 1 1 if 1 1 1 ? " i |p| 1 ? TW* forecasting hetpa you to jplan for financing the purchase Of inventory and for partying your accounte receivable. Controlling inventory and accounts receivable can help to take the strain off of your working capital. 83? The cash budget is the most effective tool available for plan ning the cash requirements and pKp plan your financial operation ? the cash you expect to take In and pay out. Your goal In budgetlng^^Maintain a satisfactory ^S,bue?sK2^^?Brf ,n proi#cl ^ CMh * Provide efficient use> dlsbursements^te luring' requirements*nfay be^slablfehed1 a'nd actual amounts ? De, arm, ne periods for repayment of borrowings. |M Ml * Establish the practicability of taking trade discounts or not MltipMlViHWls |M 1 ' f-! MM! | \f ? C&tarmlha periods of llliiiaMor investment or gtfi - chase "of Inventory and equipment. p| | ?p 1 - 1 || |p? 11 " \ l| | HP Indicate tha adaquai | mm - ; Use your experience to determine your cash sales. In season- Pens 4 oz. Glue or School Glue Pk 10 black blue or (THeod Filler Paper, 200 count _ - OO^ wide or narrow margin 2 3 Subject Notebooks, 120 count 99* #6710 or #5746 Wireless Neatbook, 80 count, #5222^ or #5626.77.. EMINGTON PM-760 Triple Action Razor Energy Choice Light Bulbs 4pk. 52/67/00 Watts 3-way 45/140 $ J_99 Thermacell Curling Iron Curl Dazzler Dryer V for Permed or Naturally Curly Hair #055W ^ 1 >| 87 Sassaby Cosmetic ^Organizers K assorted H styles and mg colors Savings up to 50% on Summer Close Outs 40% off Swim Accessories 50% off ^ Planters and Sun Visors 40% off |v^A-?sa Plant Food and Beach Towels jwySi 30% off ^=^0/ Lawn Chairs and p=ggg 25% off llll Pans and Grills Diets IpBHHBpHMHHBnMH. ? We Reserve the Right to Limit Quantities' Visit One of These Convenient Crown Drug Locations 1 . 631 Peteri Creek Parkway 8. lewieville, 6499 Shallowford Rd. 2. ReynoWa Manor Shopping Center 9. Stanleyville, Old Hwy. 52 North 3. 3075 Kernertville Road 10. King, Colony Centre 4. 301 Acadia Avenue . 11 . Walkertown, Hwy. 66 5. Hanes Mall 1 2. 491 7 Country Club Rd. 6. Oldtown, 3716 Reynolda Road 13. Bermuda Quay 7. Clemmoni, We a two od Village 14. New Market Plaza ? Kern^fiville Alio in: Salitbury, Yadkin vi lie, MockevKte, Newton, Tayloraville, A Lexington Vlaft a Crown Drug Optic Stop today, located In Crown Drug Stores at the foM owing locations : ? Manos Ma> ? Oavidson Ptaza Winston-Salem, NC Lexington, NC 766-9322 249-6732 ? WUkMr Oak Shopping Center Mooksvile, NC 634-6216