HRT 374 Lecture Notes - Lecture 4: Cash Flow, Hospitality Industry, United States Treasury Security

• School: Cal Poly Pomona
• Department: Hospitality Management
• Course: HRT 374
• Professor: John Self

Document Summary

Shows the effects on cash of a business"s operating, investing, and financing activities for the accounting period. Can see how good your company is doing at turning profit into cash. Profits are not real money but cash is. Short-term, highly liquid investment such as u. s. treasury bills and money market accounts. Cash in and out that is related to the actual operation (kind of summary of income statement) Cash transactions related to revenues and expenses. Revenues (cash inflows)- sales of food, beverages, other goods of services. Expenses (cash outflow)- operational cash expenditures, payments for salaries, wages, taxes, supplies, interest expenses. Cash flows from the acquisition and disposal for all noncurrent assets. Purchase and disposal of marketplace securities (short-term investments) Issuance and retirement of debt and the issuance, and re-purchased of capital. Expenses show up on income statement the moment you earn it. Expenses show up on statement of cash flow when you receive the money.