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

1 answer:

7 0

<span>Cash flow refers to the constant movement of money, both where and how much you're spending as well as how much you're earning in return. Looking at cash flow is an important step in a good financial plan because it can help you determine places where you need to scale back on spending. For example, if you buy a $2 cookie every day, it won't feel like you're spending a lot of money. But after a month, you will have spent $60 on cookies that could have gone to something else, like car repairments. By being aware of this spending, you can save more money and have better control of spending habits.</span>

You might be interested in

John and Karl can live together in a two-bedroom apartment for $500 per month, or each can rent a single-bedroom apartment for $

tester [92]

Explanation:

A: Together their flat is $500, however if they were to live separately it'd be $350 per month. 350x2= 700. They save $200 by sharing a flat. However, if Karl plays John $175 a month to keep the dirty dishes away, then 200>175. Therefore, they should live together.

Karl could just live alone and pay the $350 to live alone with no dish problem. Since Karl will play $175 to rid the dish problem the highest rent he'll pay is 350-175=175. John would pay 500-175=325<350 this shows it better for John to live with Karl.

B: If living alone, John would pay £ 350. The highest monthly rent he would be willing to pay for the shared apartment is: £ 350- £ 30 = £ 320. This means that Karl would need to pay at least: £ 500- £ 320 = £ 180. But the highest monthly rent Karl would be willing to pay is : £ 175. They should live separately.

hope this helps you out a bit, I know its a lot. But its math, what do we expect. lol

6 0

4 years ago

It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when an excessive

Arlecino [84]

Answer:

It describes the problem of transaction costs and negotiation.

Explanation:

Externalities are situations that arise when the activities of an organization affects another for good or bad, but with the first organization that caused the change, receiving no benefits (if it was a positive change), or bearing no costs (if it as a negative change).

Ronald Coase proposed some theories about the possible solutions to externalities. One of them is negotiation between the two parties involved. The problem with this solution is the high costs of transaction that could be spent before an agreement is reached. The number of people involved in the negotiation could also be a problem.

4 0

4 years ago

sold inventory for $ 280 comma 000, terms 4/10, n/30. Cost of goods sold was $ 160 comma 000. How much sales revenue will Old

Inga [223]

Answer:

A. $ 268,800

Explanation:

According to the net method,

A company will report the sales after deducting the discount (if there is any discount term is given) assuming that the buyer will pay the money within the discounting period.

Therefore, Old Oak Winery will report the sale as follows:

Sales revenue = $280,000

<u>Less: Sales discount ($280,000 × 4%) = $ 11,200 </u>

Net Sales revenue = $268,800

Hence, option A is correct.

5 0

3 years ago

Hey Guys,

Svet_ta [14]

I have an idea!!!!!

Want me to helps YOU?

3 0

3 years ago

For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the

Ksju [112]

I do not Know this answer hey hey

8 0

3 years ago