Archive for the ‘Business Credit’ Category
Cash Flow Statement Theory
Cash flow statement is designed to meet the following objectives (Hongren et al 1989: 845):
- To estimate the future cash flows. In many cases, the sources and uses of cash the company does not change dramatically from year to year. Therefore, cash receipts and payments can be accepted as a good tool to estimate cash receipts and disbursements in the future.
- To evaluate management decision-making. Consolidated cash flow the company will report on investment activity, thus providing information on cash flows to investors and creditors to evaluate the manager’s decision.
- To determine the company’s ability to pay dividends to shareholders, interest and principal payments to creditors.
- Statements of cash flows helps investors and creditors to know whether the company could make payment – this payment.
- To show the relationship net income to changes in corporate cash.
Corporate Credit Concepts as the Complementary Basic Idea of Your Business
If we want to be a successful person in this life, we like it or not, have to have our own business. You start from any side or any business you want. The main reason why you are going to need your own business is that you will have one unlimited sides around you, no more boundaries that will hold your ability to grow. As long as you have willingness and self determination to win, you will be able to conquer everything. First thing before you build your own business empire, you will need fresh idea what kind of service or product business you are going to run. Once you find that, next is you are going to need credit. The corporate credit concepts are actually basic idea to get funds just to get raw materials of your product business, or to train some staffs from service industry.
One thing you need to put in your mind is that to these corporate credit concepts are not one easy thing to handle. You need to find the best lender related to your work and finally get the credit for your business. But besides this, you also need to mark your mind to responsible over the credit since irresponsible act furthermore will jeopardize your growing business.