Learning Outcome Statements

1. Managing and Measuring Liquidity

a. describe primary and secondary sources of liquidity and factors that influence a company's liquidity position;

b. compare a company's liquidity measures with those of peer companies;

c. evaluate working capital effectiveness of a company based on its operating and cash conversion cycles and compare the company's effectiveness with that of peer companies;

2. Managing the Cash Position

d. describe how different types of cash flows affect a company's net daily cash position;

3. Investing Short-Term Funds

e. calculate and interpret comparable yields on various securities, compare portfolio returns against a standard benchmark, and evaluate a company's short-term investment policy guidelines;

4. Evaluating Accounts Receivable, Inventory and Accounts Payable Management

f. evaluate a company's management of accounts receivable, inventory, and accounts payable over time and compared to peer companies;

5. Managing Short-Term Financing

g. evaluate the choices of short-term funding available to a company and recommend a financing method.