RSM100Y1 Lecture Notes - Lecture 4: Money Market Fund, Capital Expenditure, Cash Flow
Document Summary
How does the report explain the drop in global stock markets: stress on creditors, canada depends on the oil, significant shock of gas significant shock of economy. Review: what factors affect the price of oil: increase of the supply of oil, weather pattern. How are lower oil prices affecting the industry: significant less profit, creditors are at risks not been paid back. In what way are consumers and other businesses benefiting: lower price of oil makes everything cheaper, the currency is weaker causing import costs more. Auditing: if the numbers are right / operational efficiency. Collecting funds: collecting money (determine the credit policy) Purchase of raw material, regular utility, staff, taxes. The purchase of a building would likely be part of which budget: operating (master, capital, cash, two of the above. Short term financing: trade credit, promissory notes, family and friends, financial institutions (line of credit, short-term loans, factoring, commercial paper.
