ENT 500 Chapter 14: Longnecker Textbook-Chapter 14

• School: Ryerson University
• Department: Entrepreneurship and Strategy
• Course: ENT 500
• Professor: Tissenbaum

Document Summary

Businesses need cash for three principal reasons: to purchase assets such as equipment and inventory, to pay for other costs incurred such as payroll, advertising, taxes, etc, pre-start-up costs which include research and development and expert advice. Acquire new or used equipment: lease-versus-buy calculation program, government of canada"s website for canadian entrepreneurs. It requires no up-front cash, freeing the rm"s cash for other purposes. Cash budget (cash ow forecast: the management of current assets and current liabilities, a planning document strictly concerned with the receipt and payment of dollars, in ow and out ow of cash. Broken down monthly for the rst year, quarterly for the second and third year, and annually. Starts with how much cash is on hand at the beginning of the month, or the balance forwarded. Cash out ow from operations is cash paid to employees and suppliers of goods and services. Cash out ow from non operating activities are things such as loan, payments, equipment.