BU121 Study Guide - Final Guide: Operating Cash Flow, Discounted Cash Flow, Union Shop
Document Summary
Financial management: managing a firm"s money so that it can meet its goals; all business decisions have financial consequences, so managers in all departments work with financial personnel. Financial managers use the financial statements and other information prepared by accountants to make financial decisions; they focus on cash flows (vs. accountants who collect and present the data) Responsibilities & activities: involve analyzing financial data, monitoring the firm"s financial status, and preparing/implementing financial plans. Financial plan guides firm toward its goals. It enables firm to estimate the amount and timing of its financing needs. To prepare a financial plan, the financial manager must first consider existing and proposed products, the resources available to produce them, and the financing needed. Forecasts and budgets are essential & should be part of an integrated planning process that links them to strategic plans and performance measurement. Financial forecasts: projections of future developments within the firm.
