COMM 102 Lecture Notes - Lecture 18: Investment, Convertible Bond, Retained Earnings
Document Summary
The spending and raising of a irm"s money is both a science and an art. Cfos need a broad understanding of their irm"s business and industry, as well as leadership ability and creaivity. How cash flows through a business (ex 18. 1): Any company needs money to operate, and to make money, it must irst spend money. Revenues from sales of the irm"s products should be the chief source of funding, but it may not always come in when it is needed to pay the bills. Financial managers must track how money is lowing into and out of the irm, as shown on this slide. They determine how available funds will be used, how much money is needed, then they choose the best sources to obtain the required funding. While accouning"s main funcion is to collect and present inancial data, inancial managers" focus on cash lows the inlows and ouflows of cash.
