<p></p><p>CASH RULES</p><p>learn &amp; manage the 7 cash-flow drivers for your company’s success<br/>bill mcguinness<br/>KIPLINGER BOOKS<br/>Washington, DC<br/></p><p>Table of Contents<br/>Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi<br/>PART ONE: The ABCs of Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1<br/>Chapter 1: Cash Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3<br/>Why Cash Flow Is Important • Profitability versus Cashflowability<br/>• Cash Is King • What Is Cash Flow? • Team Cash Flow<br/>Chapter 2: Cash-Flow Language &amp; Environment . . . . . . . . . . . . . . . . . . . . . . 17<br/>Introducing the Cash Drivers: A New Language • Cash Flow in<br/>a Company Context • Building a Cash-Flow Culture<br/>Chapter 3: Basic Accounting:<br/>The Grammar of Cash-Driver Language . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33<br/>The Accounting Equation • The Double-Entry System<br/>Chapter 4: Statements of Cash Flow &amp; Analysis of Ratios . . . . . . . . . . . . 49<br/>The Cash-Adjusted Income Statement • Long-Term Viability<br/>&amp; Cash Flow • Other Measures of a Company’s Well Being<br/>• The Ultimate Cash-Flow Risk: Bankruptcy • Getting Ready<br/>for a Closer Look at the Cash Drivers<br/>PART TWO: The Seven Cash Drivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77<br/>Chapter 5: Sales Growth: The Dominant Driver . . . . . . . . . . . . . . . . . . . . . . 79<br/>Growth That Ripples • Marketing Mix &amp; the ManagementEffect </p><p>• Growth Takes Cash • Breakeven Analysis &amp; Contribution<br/>Margin • Sustainable Sales Growth • Big-Gulp Sales Growth &amp;<br/>Cash-Flow Implications<br/>Chapter 6: Gross Margin: First of the Fundamentals . . . . . . . . . . . . . . . 103<br/>The Two Sides of Margins • Gross Margin &amp; Contribution Margin<br/>• Refining Gross-Margin Calculations • Distribution Channels &amp;<br/>Gross Margins • Gross Margin &amp; Totally Perishable ‘Inventory’<br/>Chapter 7: SG&amp;A: The Other Fundamental. . . . . . . . . . . . . . . . . . . . . . . . . . 115<br/>Cost Ups &amp; Downs • SG&amp;A &amp; Capacity • Expense &amp;<br/>Expenditure<br/>Chapter 8: Swing Factor #1: Accounts Receivable. . . . . . . . . . . . . . . . . . 121<br/>Communicating With Customers • A/R &amp; the Marketing<br/>Connection • Industry Norms • Factoring<br/>Chapter 9: Swing Factor #2: Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131<br/>Inventory Valuation • Types of Inventory • Inventory &amp; the<br/>Production Process • Just-in-Time (JIT) Inventory • Inventory<br/>&amp; Purchasing Management • Inventory-Related Costs<br/>Chapter 10: Swing Factor #3: Accounts Payable . . . . . . . . . . . . . . . . . . . 145<br/>Suppliers &amp; Inventory • Discounts • Prioritizing &amp;<br/>Policing Payables<br/>Chapter 11: Keeping Up:Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . 151<br/>Depreciable Life &amp; Economic Shifts &amp; The Capex Driver<br/>&amp; Sales Growth • Depreciation &amp; Capex • Leasing &amp;<br/>Capex • Capital Budgeting &amp; • Capex &amp; Growth<br/>PART THREE: Cash Flow &amp; Business Management . . . . . . . . . . . . . . . . . . 161<br/>Chapter 12: The Mechanics of Cash-Driver Shaping &amp; Projections . . . 163<br/>Shaping the Cash Drivers • Projecting Future Cash Flows •<br/>Putting It All Together</p><p>Chapter 13: Cash Drivers &amp; Strategic Thinking . . . . . . . . . . . . . . . . . . . . . 185<br/>Cash-Driver Harmony • Cash Drivers &amp; Competitive Advantage<br/>• Cash Drivers &amp; Export Potential<br/>Chapter 14: Risk, Return &amp; Valuing Cash Flows . . . . . . . . . . . . . . . . . . . . 195<br/>Debt &amp; Equity Values • The Market’s Move to Using Cash Flow<br/>to Evaluate a Business • Summarizing the Basic Steps of the<br/>Mechanics of the Valuation Process<br/>Chapter 15: What’s Next . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207<br/>Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209</p>