BU127 Lecture Notes - Lecture 5: Cash Cash, Commercial Paper
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Document Summary
Cash flows are an indication of a companies financial health. So near to that there is a little risk that their value will change if interest rates change. Only investments with original maturities of three months or less qualify a. Statement of cash flows reports cash inflows and outflows in three broad categories: ope financing, investing activities. Operating - cash inflows and outflows directly related to earnings from normal op (cash received from revenues) ---> inflow. Investing - cash inflows and outflows related to the acquisition or sale of producti and investment in the securities of other companies. Financing - cash inflows and outflows related to external sources of financing (ow creditors) for the enterprise. Reports the cash effects of the sale or repurchase of shares, repayments of debts se and the payment of cash dividends ear to maturity. Operating, al operations ductive facilities (owners and ts securities. Sale of investments,collection of loans, sale of operational assets (inf.
