BUSI 2150U Study Guide - Ing Group, Cash Flow Statement, Cash Flow
Document Summary
Chapter 5: cash flow, profitability, and the cash flow statement. Have a clear plan, and know what you are going to do and don"t change the plan. Don"t buy railroad or other set, don"t buy other color property. You don"t want to have a lot of assets with no money. Bankrupt your opponent when you need your pieces. The best types of business"s are when customers have to constantly buy the product. Cash flow is a necessary concept to have a successful business, you need cash flow tha is constant, repeating, etc. so you can pay bills etc. Cut down the amount of people working in the factory. Without it, business quickly grinds to a halt. You must have liquidity; liquidity is cash - the ability to pay short-term debts. Inventory conversion period (want this to be as short as possible)
