Looking at cash flow an important step in a good financial plan due to the following reasons:
- To determine areas in business that needs scaling back on spending.
- To monitor the amount of money being received.
<h3>What is a
cash inflow?</h3>
A cash inflow can be defined as an amount of money that flows into a business firm.
<h3>What is a statement of cash flows?</h3>
A statement of cash flows is also referred to as cash flow statement and it can be defined as a financial statement which illustrate how changes in income and various account of the balance sheet affect cash and other cash equivalents.
As a general rule in business management, looking at cash flow an important step in a good financial plan due to the following reasons:
- To determine areas in business that needs scaling back on spending.
- To monitor the amount of money being received.
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The 2.33, 1.87, 3,6, 7.1 is not in order
For example, monthly capitalization with annual rate of interest means that the compounding frequency is 12, with time periods measured in years. The effect of compounding depends on: The nominal interest rate which is applied and. The frequency interest is compounded.
