management of finance Flashcards
1
Q
what is included on an income statement
A
gross profit
profit for the year
expenses
cost of sales
2
Q
what methods can be used to solve cash flow problems
A
arrange a bank overdraft
improve credit score
find a cheaper supplier
3
Q
what can cause cash flow problems
A
too much inventory
low profits
overtrading
allowing too much credit
4
Q
What is a cash budget
A
Shows expected receipts and payments on a monthly basis to help asset potential cash flow problems
5
Q
How to increase cash flow?
A
Decrease in trade receivables
New capital invested
Loan received
Sale of inventory
6
Q
How to decrease cash outflow
A
Increase in trade variables
Loan repaid
Purchase of fixed assets
Purchasing inventory
