Cash Flow

0.0(0)
Studied by 0 people
linked notesNote
call kaiCall Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/9

encourage image

There's no tags or description

Looks like no tags are added yet.

10 Terms

1
New cards

Cash Flow

Real money moving into and out of your bank account.

2
New cards

Profit

Money left over after subtracting costs on paper.

3
New cards

Key Rule of Business

A business can show a profit on paper and still fail if actual cash runs out.

4
New cards

Net Cash Flow Formula

Net Cash Flow=Cash In−Cash Out\text{Net Cash Flow} = \text{Cash In} - \text{Cash Out}

5
New cards

Closing Balance Formula

Closing Balance=Starting Balance+Net Cash Flow\text{Closing Balance} = \text{Starting Balance} + \text{Net Cash Flow}

6
New cards

Cash Management Tip

Today's closing balance becomes tomorrow's starting balance.

7
New cards

How to Fix Cash Shortages

Ask suppliers to let you pay later.

8
New cards

Cash Shortage Solution

Offer discounts to customers who pay right away.

9
New cards

Cash Shortage Strategy

Wait to buy expensive equipment.

10
New cards

Bank Overdraft

Set up a bank overdraft early.