Mm 2.03 1

Click here to load reader

  • date post

    19-May-2015
  • Category

    Documents

  • view

    101
  • download

    1

Embed Size (px)

Transcript of Mm 2.03 1

  • 1. Marketing Management Indicator 2.03Implement accounting procedures to track money flow and to determinefinancial status.

2. The Importance of Adequate Cash Flow to Business Success Making sure there is enough cash to operate is oneof businesss most important financial activities Movement of cash is important Determines the amount can work with at any given time If running low May not be able to cover expenses May not be able to pay the employees May fail Businesses that are profitable may experiencecash-flow problems Sources of cash that flow into a business Some sources are more reliable and steady than others 3. Sources of Cash Start-up money Funds to cover expenses until revenue starts to come in Sale of products Main source of cash for established businesses Loans Businesses borrow cash to expand Possibly needed when sales are slow Interest Invest extra cash to earn interest Sale of assets Anything of value a business owns that can be sold 4. Sources of Cash That Flow Out of aBusiness 5. How do Cash Flow Statements TellWhen, Where, and How Much? When Warns when business will be low on cash Identifies high and low points Identifies months when certain sources of income will be collected Where What source Debit cards, cash, credit cards How much Tells how much cash is flowing into the business Can plan ahead for expected shortages 6. How do Cash Flow Statements TellWhen, Where, and How Much? When Warns when business will be low on cash Identifies high and low points Identifies months when certain sources of income will be collected Where What source Debit cards, cash, credit cards How much Tells how much cash is flowing into the business Can plan ahead for expected shortages