Chapter04pptm - Chapter4:Howmuchcashcan wetake? Developing...

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Chapter 4: How much cash can  we take?    Developing  cash budgets  from  proformas
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KO 1:  Profit and cashflow are not equal n Profit = Revenues less expenses. n Profit is determined by accrual-based accounting  rules and the matching principle. n Matching means we match revenues and expenses  for the same time period to determine our profit,  whether or not the cash from sales is received or the  bills have been paid! n Cashflow = Deposits into and withdrawals from our  bank account.  n The timing of cashflows does not necessarily match  GAAP’s recognition of revenues and expenses.
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KO 2:  Planning motivates control through  Evaluation Balanced scorecard to evaluate the success of the strategic plan. Variance reporting for operations and cash management. Control Motivate daily decisions, communicate and coordinate activities, solve problems. Why?
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This note was uploaded on 03/11/2010 for the course BA 252 taught by Professor Thomas,m during the Spring '08 term at Humboldt State University.

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Chapter04pptm - Chapter4:Howmuchcashcan wetake? Developing...

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