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  • 1. Marketing Management Indicator 2.03Implement accounting procedures to track money flow and to determine financial status.
  • 2. The Importance of Adequate Cash Flow to Business Success• Making sure there is enough cash to operate is one of business’s most important financial activities• Movement of cash is important • Determines the amount can work with at any given time • If running low • May not be able to cover expenses • May not be able to pay the employees • May fail• Businesses that are profitable may experience cash-flow problems • Sources of cash that flow into a business • Some sources are more reliable and steady than others
  • 3. Sources of Cash• Start-up money • Funds to cover expenses until revenue starts to come in• Sale of products • Main source of cash for established businesses• Loans • Businesses borrow cash to expand • Possibly needed when sales are slow• Interest • Invest extra cash to earn interest• Sale of assets • Anything of value a business owns that can be sold
  • 4. Sources of Cash That Flow Out of a Business
  • 5. How do Cash Flow Statements Tell When, Where, and How Much?• When • Warns when business will be low on cash • Identifies high and low points • Identifies months when certain sources of income will be collected• Where • What source • Debit cards, cash, credit cards• How much • Tells how much cash is flowing into the business • Can plan ahead for expected shortages
  • 6. How do Cash Flow Statements Tell When, Where, and How Much?• When • Warns when business will be low on cash • Identifies high and low points • Identifies months when certain sources of income will be collected• Where • What source • Debit cards, cash, credit cards• How much • Tells how much cash is flowing into the business • Can plan ahead for expected shortages