Unformatted text preview: that often require large sums of money ii. Cash Budget-Estimates projected cash inflows and outflows that can be used to plan for cash shortages iii. Operating Budgets-Projection of dollar allocations to various costs and expenses needed 3. Establishing Financial Controls a. A process in which a firm periodically compares its actual revenues, costs, and expenses w/ its projected ones. Money has a time value which means that it can be invested in a way that can procure more money at a later date. Businesses must maintain inventories that often involve a sizable expenditure of funds. 4 Major Financial Needs for a Firm 1. Managing Day-by-Day needs of the business 2. Controlling Credit Operations 3. Acquiring Needed Inventories 4. Making Capital Expenditure...
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This note was uploaded on 03/02/2009 for the course AEM 2200 taught by Professor Perez,p.d. during the Summer '07 term at Cornell.
- Summer '07