Class Notes (836,147)
Canada (509,656)
Finance (549)
FIN 521 (2)
D Imaria (1)
Lecture

Cash outflows.docx

2 Pages
136 Views
Unlock Document

Department
Finance
Course
FIN 521
Professor
D Imaria
Semester
Summer

Description
Introduction to cash flow management In an ideal world, a business will experience a consistently positive cash flow – i.e. the amount of cash coming into the business (cash inflow) is greater than the cash going out of the business (cash outflows) This would allow a busness to build up cash reserves with which to plug cashflow gaps, seek expansion and reassure lenders and investors about the health of the business. However, it is important to note that income and expenditure cashflows rarely occur together, with inflows often lagging behind. An important aim of effective financial management must be to speed up the inflows and slow down the outflows. Cash inflows The main cash inflows are:  payment for goods or services from customers  receipt of a bank loan  interest on savings and investments  shareholder investments  increased bank overdrafts or loans Cash outflows The main cash outflows are:  purchase of stock, raw materials or tools  wages, rents and daily oper
More Less

Related notes for FIN 521

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit