On completing this chapter, you should know about
- Two cash-related cycles—the operating cycle and the financing cycle—that an organization must manage if it is to make sure it has enough cash on hand to meet its obligations
- The role of an organization's debt structure in cash management
- The advantages and disadvantages of leverage, including the distinction between financial risk and business risk
- The role of profit (or surplus) as a financing mechanism for the fixed assets and working capital needed to support organizational growth
- The statement of cash flows and what it measures
Moving from preparing the capital and operating budgets to preparing the cash budget requires an understanding ...