The course is Financial Analysis for Technology Managers
How do profits and cash flow differ from each other, and why is it important to understand both 'profits' and 'cash flow' of your company? With regard to profit and cash, what should you be keeping an eye on as a technology manager and why?
|
Profit |
Cash flow |
|
Profit is the financial gain your company is making on its products or services. |
Cash flow is how much money is going into and out of your business at a given time |
|
Profit, also called net income, is what remains from sales revenue after all the firm's expenses are subtracted. |
Cash flow is the money that flows in and out of the business from operations, financing, and investing activities and It is the money or cash, available to meet current and near-term obligations |
|
A business can’t survive unless it is profitable. |
Cash flow will allows to pay expenses on time, including suppliers, employees, rent, insurance, and other operational costs. |
|
Profit is the net income after expenses are subtracted or less from sales |
Cash flow is the actual money going in and out of your firm. |
|
A firm can be profitable and still not have adequate cash flow. |
A firm can have good cash flow and still not make any profit. |
|
Sale revenue – cost of sales = Gross profit Gross profit – Expenses = PROFIT |
CASH FLOW : Cash inflow – Cash outflow = Net cash flow Net cash flow + opening balance = Closing balance |
IMPORTANCE OF CASH FLOW
IMPORTANCE OF PROFIT
ROLE OF TECHNOLOGY MANAGERS
RESPONSIBILITIES OF TECHNOLOGY MANAGERS
The course is Financial Analysis for Technology Managers How do profits and cash flow differ from...
How do accountants and financial managers differ in their use of financial information? Why is cash flow more significant to a financial manager than it is to an accountant?
How do accountants and financial managers differ in their use of financial information? Why is cash flow more significant to a financial manager than it is to an accountant?
The course is Financial Analysis for Technology Management Budgets are merely financial plans and estimates of future events. Then reality hits. As a manager, what do you do when your actual financial results differ significantly from your budget? When should you know, and who should you be communicating with?
Write approximately 1,500 words (total) to answer these questions: How do profit and loss statements cash flow (using the direct and indirect methods), and aging summaries contribute to new budgets? How can you ensure that managers and supervisors in the organisation understand the budget and understand their reporting requirements with regard to financial management? Budgets are used to identify and track discrepancies between agreed and actual allocations. Explain. How do budgets contribute to analysis of existing financial management approaches?
Please show me how to do this analysis in excel Income and Cash Flow Analysis The Berndt Corporation expects to have sales of $12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be $1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndt’s federal-plus-state tax rate is 40%. Berndt has no debt. Set up an income statement. What...
why is the cash flow statement important? How does it differ from the income statement?Describe the significance of each of the three major sections of the cash flow statement in detail.
Agree or Disagree and Why? A financial statement is a statement that reports all relevant financial information, presented in a “structured manner and in a form easy to understand for managerial use for taking prompt and informed decision making related to investment” (Blessing and E.E. 2015). The analysis of financial statements evaluates the past and current financial situation of a company, allowing it to establish estimates and predictions about future scenarios. Financial analysis is crucial in maintaining a successful business....
How do you believe you would determine the cash flow in a financial position? What specific financial documents would you look at? What specific equations would you perform to understand the cash flow position?
What is the purpose of Financial Statement Analysis? How do the three types of financial statement analysis differ from each other and when is each used? Types- Vertical, Horizontal, and Ratio Looking for an original answer. Please don't cut and paste. If you use a source, please provide link or source for citation. Thank You.
Financial managers work in just about every industry and every country in the world. In fact, in 2013, the need for financial managers increased by almost 4%, creating over 5,000 new positions worldwide. Why is the financial management position becoming so important? What do financial managers do and what types of businesses employ financial managers? The responsibilities of and need for financial managers? Explain the responsibilities of financial managers working in global business environments. Then, describe the types of businesses...