BUS 201 Lecture Notes - Lecture 10: Trade Credit, Revolving Credit, Accounts Payable

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 201
• Professor: Peter Tingling

Document Summary

Finance: the business function involving decisions about a firm"s long-term investments and obtaining the funds to pay for those investments, managers responsible fro planning and overseeing the financial. Managing the pattern of cash inflows (revenues) and outflows (debt payments) Investing funds that are not needed to service debt. Funds must either be committed to maintaining the firm, or earning interest, not sitting idle. Preparing budgets to ensure that sufficient cash is on hand to meet operational and debt-service needs. A plan to achieve a desired financial status: Projections of revenue flows sources and planned uses of funds to meet both short- and long- term goals timing of when funds will be required. When constructing a financial plan, we must ask: Rules governing a firm"s extension of credit to customers: materials and goods currently held by the company that will be sold within the year, raw materials.