Chapter 2 - Chapter 2 Personal Cash Flow Statement Personal cash flow statement a financial statement that measures a persons cash inflows and

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Chapter 2 Personal Cash Flow Statement Personal cash flow statement: a financial statement that measures a person’s cash inflows and outflows Cash inflows include salaries, interest, dividends Cash outflows include all expenses, both large and small Create a statement by recording your revenues and expenses over a period of time Net cash flows: cash inflows minus cash outflows Factors That Affect Cash Flows Factors affecting cash inflows: Stage in your career path Closely related to your stage in the life cycle—college, career, retirement Type of job Based on skill level and demand for those skills Number of income earners in your household Factors That Affect Cash Flows Factors affecting cash inflows: Stage in your career path Closely related to your stage in the life cycle—college, career, retirement Type of job Based on skill level and demand for those skills Number of income earners in your household Factors affecting cash outflows: Size of family Age Personal consumption behavior Some people spend all of their income and more while others spend mainly on necessities and concentrate on saving for the future Creating a Budget Budget: a cash flow statement that is
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This note was uploaded on 02/08/2012 for the course FINANCE 250 taught by Professor Maryevans during the Spring '12 term at Rutgers.

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Chapter 2 - Chapter 2 Personal Cash Flow Statement Personal cash flow statement a financial statement that measures a persons cash inflows and

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