Wood, John C., and Dolores D. Smith, “Electronic Transfer
of Government Benefits,” Federal Reserve Bulletin,April
1991, 204–207.
The following articles provide more information on each concen-
tration systems:
Stone, Bernell K., and Ned C. Hill, “Cash Transfer Scheduling
for Efficient Cash Concentration,”Financial Management,
Autumn 1980, 35–43.
Stone, Bernell K., and Tom W. Miller, “Daily Cash Fore-
casting with Multiplicative Models of Cash Flow Pat-
terns,” Financial Management,Winter 1987, 45–54.
For more information on marketable securities, see
Brown, Keith C., and Scott L. Lummer, “A Reexamination
of the Covered Call Option Strategy for Corporate Cash
Management,” Financial Management, Summer 1986,
13–17.
Kamath, Ravindra R., et al., “Management of Excess Cash:
Practices and Developments,” Financial Management,
Autumn 1985, 70–77.
Zivney, Terry L., and Michael J. Alderson, “Hedged Divi-
dend Capture with Stock Index Options,” Financial
Management,Summer 1986, 5–12.
The following articles and books provide additional insights into
the problems of inventory management:
Arvan, L., and L. N. Moses, “Inventory Management and
the Theory of the Firm,”American Economic Review,
March 1982, 186–193.
Brooks, L. D., “Risk-Return Criteria and Optimal Inventory
Stocks,” Engineering Economist,Summer 1980, 275–299.
Followill, Richard A., Michael Schellenger, and Patrick H.
Marchard, “Economic Order Quantities, Volume Dis-
counts, and Wealth Maximization,” The Financial Review,
February 1990, 143–152.
Kallberg, Jarl G., and Kenneth L. Parkinson, Current Asset
Management: Cash, Credit, and Inventory (New York:
Wiley, 1984).
Articles that address credit policy and receivables management
include the following:
Atkins, Joseph C., and Yong H. Kim, “Comment and Cor-
rection: Opportunity Cost in the Evaluation of Invest-
ment in Accounts Receivable,” Financial Management,
Winter 1977, 71–74.
Ben-Horim, Moshe, and Haim Levy, “Management of Ac-
counts Receivable under Inflation,” Financial Manage-
ment, Spring 1983, 42–48.
Dyl, Edward A., “Another Look at the Evaluation of Interest
in Accounts Receivable,” Financial Management,Winter
1977, 67–70.
Gallinger, George W., and A. James Ifflander, “Monitoring
Accounts Receivable Using Variance Analysis,” Financial
Management,Winter 1986, 69–76.
Hill, Ned C., and Kenneth D. Riener, “Determining the
Cash Discount in the Firm’s Credit Policy,” Financial
Management,Spring 1979, 68–73.
Kim, Yong H., and Joseph C. Atkins, “Evaluating In-
vestments in Accounts Receivable: A Wealth Max-
imizing Framework,” Journal of Finance,May 1978,
403–412.
Mian, Shehzad L., and Clifford W. Smith, “Extending Trade
Credit and Financing Receivables,” Journal of Applied
Corporate Finance,Spring 1994, 75–84.
Oh, John S., “Opportunity Cost in the Evaluation of Invest-
ment in Accounts Receivables,” Financial Management,
Summer 1976, 32–36.
Roberts, Gordon S., and Jeremy A. Viscione, “Captive Fi-
nance Subsidiaries: The Manager’s View” Financial Man-
agement,Spring 1981, 36–42.
Sachdeva, Kanwal S., and Lawrence J. Gitman, “Accounts
Receivable Decisions in a Capital Budgeting Frame-
work,” Financial Management,Winter 1981, 45–49.
Walia, Tinclochan S., “Explicit and Implicit Cost of
Changes in the Level of Accounts Receivable and the
Credit Policy Decision of the Firm,” Financial Manage-
ment,Winter 1977, 75–78.
Weston, J. Fred, and Pham D. Tuan, “Comment on Analysis
of Credit Policy Changes,” Financial Management,Win-
ter 1980, 59–63.
For more on trade credit, see
Adams, Paul D., Steve B. Wyatt, and Yong H. Kim, “A Con-
tingent Claims Analysis of Trade Credit,” Financial Man-
agement,Autumn 1992, 104–112.
Brosky, John J., The Implicit Cost of Trade Credit and Theory of
Optimal Terms of Sale(New York: Credit Research Foun-
dation, 1969).
Schwartz, Robert A., “An Economic Analysis of Trade,”
Journal of Financial and Quantitative Analysis,September
1974, 643–658.
For more on bank lending and commercial credit in general, see
Campbell, Tim, S., “A Model of the Market for Lines of
Credit,” Journal of Finance,March 1978, 231–243.
The following cases from the Cases in Financial Management
series focus on the credit policy decision:
Case 29, “Office Mates, Inc.,” which illustrates how changes
in current asset policy affect expected profitability and
risk.
Case 32, “Alpine Wear, Inc.,” which illustrates the mechan-
ics of the cash budget and the rationale behind its use.
Two new cash budgeting cases, Case 32A, “Toy World, Inc.,”
and Case 32B, “Sorenson Stove Company,” have been
added to the Dryden case set.
Case 33, “Upscale Toddlers, Inc.,” which deals with credit
policy changes.
Case 34, “Texas Rose Company,” which focuses on receiv-
ables management.
Case 62, “Western Supply Company,” which illustrates the
effects of a change in credit policy on corporate prof-
itability and cash flow.
Selected Additional References and Cases 621
616 Working Capital Management
