Mm 2.03 1

232 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
232
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Mm 2.03 1

  1. 1. Marketing Management Indicator 2.03Implement accounting procedures to track money flow and to determine financial status.
  2. 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. 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. 4. Sources of Cash That Flow Out of a Business
  5. 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. 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

×