MGM101H5 Lecture Notes - Lecture 6: Financial Plan, Capital Asset, Cash Flow
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MGM101H5 Full Course Notes
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Document Summary
Can businesses exist without money: no, spend more than we bring in operaing at deicit, bankrupt; debt is too high. Financial manager oversees expenditure and ensures they can stay operaional in long run: responsible for cash, acquisiion and disbursements, acquiring resources for lowest price, obtain money and use money efecively, responsible for seeing that company pays bills. Cash cycle: spend money irst, staf, inventory, equipment, capital, to generate products and services. Financial managers stay abreast of changes and opportuniies in inance and adjust to them. Also carefully analyze tax implicaions of various managerial decisions in atempt to minimize taxes paid by business. Short term and long term: budget cash needs. Cash: when we need it and how much. Capital: capital asset budget, investments: control diferences. Budget; quanitaive way of staing strategic plans: sets forth management"s expectaions for revenues and, on basis of expectaions, allocates use of speciic resources throughout the irm. Financial control; compares actual revenues to actual goals.
