MB105 Lecture Notes - Lecture 13: Commercial Finance, Financial Statement, Trade Credit

• School: WLU
• Department: Business Technology Management
• Course: MB105
• Professor: Josephine Mc Murray

Document Summary

The implications of financial management and how financial managers fulfill their responsibilities. Financial management involves the strategic planning and budgeting of short and long term funds for current and future needs. Tracking past financial transactions, controlling current revenues and expenses, and planning for future financial needs of the company are the foundation of financial management. A financial manager or chief financial officer (cfo) oversees the financial operations of a company. Forecasts predict revenue, costs, and expenses for a specific future period. Long term: longer than one year into the future. Budget a fi(cid:374)a(cid:374)(cid:272)i(cid:374)g pla(cid:374) that outli(cid:374)es the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s pla(cid:374)(cid:374)ed (cid:272)ash flo(cid:449)s, e(cid:454)pe(cid:272)ted ope(cid:396)ati(cid:374)g e(cid:454)pe(cid:374)ses, a(cid:374)d anticipated revenues. Operating (master) budget includes all the operating costs for the entire organization, including inventory, sales, purchases, manufacturing, marketing, and operating expenses. Capital budget (cid:272)o(cid:374)side(cid:396)s the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s lo(cid:374)g (cid:396)a(cid:374)ge pla(cid:374)s a(cid:374)d outli(cid:374)es the e(cid:454)pe(cid:272)ted fi(cid:374)a(cid:374)(cid:272)ial (cid:374)eeds for significant capital purchases such as real estate, manufacturing equipment, plant expansions, or technology.