BU121 Final: BU121 Final Exam Review
Document Summary
Role of finance and the financial manager o. Financial managers- use the financial statements and other information prepared byaccountants to make financial decisions; they focus on cash flows (vs. accountants who collect and present the data) Responsible for financial planning, investment and financing. Financial planning: guides firm toward its goals. It enables firms to estimate the amount and timing of its financing needs o. Forecasting future- projections of future developments within the firm. The estimated demand for the firm"s products (sales forecast) and other financial and operating data are key inputs: budgets- plan and control future financial activities. Looking at competitors/ similar companies helps predict future cash flow. How organizations use and obtain funds (short term: cash management- ensuring that enough cash is on hand to pay bills and to meet unexpected expenses o. Financial managers attempt to shorten the time between cash outflows and cash inflows:
