FIN111 WEEK 1 TUT HOMEWORK - Critically thinking What are...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Critically thinking - What are the stakholders - how a company gnerates its cash flows. Cash flows is generated by the productive assests Residual cash flow is left over after shaqreholder and stakeholder have been paid Cash flows are generated by companys productives assets and ithis assests generated revenue through goods and services and a portion of this revenue is used to pay stakholders and leftover revenue is residual cash flow which is either reincvested into the business or given back to shareholders. 1. The cash flows between a company and its stakeholders are shown in the form of the company’s currents assets and productive assets are in return given to the stakeholder in the form as cash paid as salaries and wages to managers and other employees, cash paid to suppliers to buy supply’s, cash paid to the government as tax and interest and principal paid to creditors through the cash inflow of selling goods/services. 2. the three fundemants finical decsions are – d efinitialy in final exam - Capital budgeting decisions- this involves the productive assets the company should buy. Does the business have enough money to invest and where and how to invest. For example expand facilities, new or improved product and lease or buy Long term assets - Financing decisions – involve how the company should finance or pay for assets. Borrowing money liabilities of the company go up – affects liability of balance sheet just like if you issue shares the equity goes up - Working capital management decisions – this decision revolves around how the day to day financial matters should
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern