All categories

3 years ago

Why is looking at cash flow an important step in a good financial plan

2 answers:

6 0

It’s a good step because you know where you are at in present time as well as looking ahead into the future financially.

never [62]3 years ago

5 0

Answer:

Step-by-step explanation:

Because cash is extremely flexible. It gives management a whole lot of options. Microsoft, for the longest time, didn't pay any dividends. They kept most of their money to develop more and better software given that the hardware was steadily getting better able to handle the operating system.

Management can better plan for contingencies if they have a good cash flow.

They can more easily settle labor disputes.
They can invest in more up to date capital expenditures
They can pay dividends.
They can hire more employees to take on needed tasks.

The net income takes care of all these possibilities. But the cash flow is the amount of money the business pays out over a period of time. They are more or less constant amounts. The cash flow shows what the company needs to pay out. Anything left over is used for the 4 possibilities I've listed.

You might be interested in

Cheryl is planning to go to a four-year college in two years. She develops a monthly savings plan using the estimates shown. Wha

Alik [6]

Answer:

$541.67 per month

Step-by-step explanation:

Tuition and other expenses = $8,250 per semester.

There are two semesters in a year

She has 4 years to spend

Total semester=4years*2semesters

=8 semesters

4 years in college which is a total of 8 semesters.

Total Tuition and other expenses = $8,250 * 8

= $66,000

She needs a total of $66,00 to complete her college

Assistance from parents=$15,000

Financial aid(per semester)=$4750

Total financial aid=$38,000

Total assistance=

Assistance from parents+ financial aid

=$15000+$38,000

=$53,000

Total savings=Total amount needed - Total assistance

=$66,000 - $53,000

=$13,000

She needs to save $13,000 in two years

There are 12 months in one year

2 years=2*12=24 months

Monthly savings=Total savings/24 months

=$13,000/24

=$541.666666

To the nearest cent

=$541.67

3 0

3 years ago

PLEASE HELP!!!!! I don’t get it all :((((

asambeis [7]

The answer is 35 hope this helps

4 0

2 years ago

suppose you deposit $1000 in a savings account that pays 4.8% interest compounded monthly. Write an exponential function to mode

zubka84 [21]

Answer:

The exponential function is $A(t) = 1000(1.004)^{12t}$ .

You will have $1,100.55 in the account after 2 years.

Step-by-step explanation:

Compound interest:

The compound interest formula is given by:

$A(t) = P(1 + \frac{r}{n})^{nt}$

Where A(t) is the amount of money after t years, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per year and t is the time in years for which the money is invested or borrowed.

Deposit $1000 in a savings account that pays 4.8% interest compounded monthly.

This means that $P = 1000, r = 0.048, n = 12$ . So

$A(t) = P(1 + \frac{r}{n})^{nt}$

$A(t) = 1000(1 + \frac{0.048}{12})^{12t}$

$A(t) = 1000(1 + 0.004)^{12t}$

$A(t) = 1000(1.004)^{12t}$

This is the exponential function

How much will you have in your account after 2 years?

This is A(2). So

$A(2) = 1000(1.004)^{24} = 1100.55$

You will have $1,100.55 in the account after 2 years.

5 0

2 years ago

Why do I keep struggling in geometry. I'm in 10th grade I shouldn't be struggling but anyway my teacher let me retake a quiz/ te

skad [1K]

Step-by-step explanation:

I don't know what you need to do. Have you studied the quiz or more specific have you studied the questions that you have problems with? Also make sure you have enough sleep and have healthy food. You don't have to do read what I say(type) but it could help you.

6 0

3 years ago

Read 2 more answers

Systems of equation:substitution

Igoryamba

Step-by-step explanation:

describe y in terms of x

y=5+x

so now replace y with terms of x

5+x+3x=37

4x=32

x=8

y=13

do the same here

x=y+1

2y+x=19

2y+y+1=19

3y=18

x=6

y=7

6 0

3 years ago