Showing papers on "Cash flow forecasting published in 1969"

An Unequal-Period Model for Cash Management Decisions

Abstract: A lack of synchronization between cash inflows and outflows presents the problem of investing positive net flows and financing negative net flows. In addition to the basic investment-financing issue there are other interrelated problems such as the payment schedule and the minimal cash balance that directly affect cash management decisions. Previous attempts to solve these problems have imposed constraints that limit their application. The purpose of this study is to develop an applicable method for solving the cash management problem by deriving a linear programming model that is divided into unequal periods. The unequal time division maintains the day-to-day aspect of the problem while reducing the number of periods and variables to a manageable size. Decision variables are divided into four groups: the payment schedule, securities transactions, short-term financing, and the cash balance. The model determines the optimal values of these variables subject to institutional constraints and within a framewo...

On the transactions demand for cash: comment

Abstract: IN A RECENT ARTICLE1 Professor Whalen developed an equation for the optimal transactions demand for cash by the firm, and tested the model empirically. In addition, he proposed a model that included the possibility of asset switching, which was not tested. The purpose of this note is to raise several questions, both theoretical and statistical, about Professor Whalen's study. We believe it contains errors of sufficient seriousness to render both the model and the results claimed from its test invalid. Our comments are directed primarily at the model tested, with only passing reference to the more complicated one developed in the appendix. to his article.