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After you have studied this section, you should be capable to:
Depending upon the user's purpose, the term 'funds' may be utilized differently. Literally, this implies a supply that can be drawn upon. This means it is used for mean cash, total working capital or current assets. We use this here in the sense of working capital meaning total current assets less current liabilities.
Funds flow is utilization is refer to changes in or movement of current liabilities and current assets. This movement is of vital significance in understanding and managing of the operations of a business.
We have seen in the section dealing along with balance sheet that every material transaction changes the position statement or Balance Sheet. It in other words implies a dynamic situation including continuous movement of resources in the business, inside the business and out of the business. The complication of these flows rises with the rising size and volume of business. Indirectly or directly, all these flow take place in business by the medium of funds.
Funds in the type of cash and cash equivalents, into the right quantity are essential for the smooth functioning of any business. The continuous movement of cash inside the business and out of the business could be understood through studying the cash flow statement.
Q. Show the Profit volume charts? A variation of a break-even chart, representing graphically the relationship between profit &losses at different levels of sales volume achiev
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Determine whether process is under control: Hall's refrigeration and heating company is concerned about complaints from their customers about some of their technicia
are exploration cost treated as an asset or expense or both?
Calculate the equal monthly payments and the cost of financing on a 25-year mortgage. The cash value of the house today is $500,000. You are paying monthly at a fixed rate of 6% pe
We've all experienced (or heard about) the challenges that the airlines have been facing. Read the Zacks Investment Research article, "Airline Industry Stock Outlook - August 2012"
Flexible budgets provide different information than static budgets. Discuss some of these differences. Is a flexible budget always better? Are there times when you’d recom
The Smiths have a long-term capital loss carryover of $10,000 from 2010. On May 9, 2007, David's uncle, Joe, gave him the family antique gun collection. Based on family records
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