management of finance Flashcards
(8 cards)
what is included on an income statement
gross profit
profit for the year
expenses
cost of sales
what methods can be used to solve cash flow problems
arrange a bank overdraft
improve credit score
find a cheaper supplier
what can cause cash flow problems
too much inventory
low profits
overtrading
allowing too much credit
What is a cash budget
Shows expected receipts and payments on a monthly basis to help asset potential cash flow problems
How to increase cash flow?
Decrease in trade receivables
New capital invested
Loan received
Sale of inventory
How to decrease cash outflow
Increase in trade variables
Loan repaid
Purchase of fixed assets
Purchasing inventory
what is on an income statement
- sales revenue
- costs of sales
- opening inventory
- purchases
- closing inventory
- gross profit
what are some heading found on a cash budgeting
open balance
total funds for the period
less expenses
total expenses
closing balance
