Boundless Lecture Slides Free to share, print, make copies and changes. Get yours atAvailable on the Boundless Teaching Platform Using Boundless Presentations The Appendix The appendix is for you to use to add depth and breadth to your lectures. You can simply drag and drop slides from the appendix into the main presentation to make for a richer lecture experience. Free to edit, share, and copy Feel free to edit, share, and make as many copies of the Boundless presentations as you like. We encourage you to take these presentations and make them your own. Free to share, print, make copies and changes. Get yours atBoundless Teaching Platform Boundless empowers educators to engage their students with affordable, customizable textbooks and intuitive teaching tools. The free Boundless Teaching Platform gives educators the ability to customize textbooks in more than 20 subjects that align to hundreds of popular titles. Get started by using high quality Boundless books, or make switching to our platform easier by building from Boundless content pre-organized to match the assigned textbook. This platform gives educators the tools they need to assign readings and assessments, monitor student activity, and lead their classes with pre-made teaching resources. Get started now at: If you have any questions or problems please Boundless is an innovative technology company making education more affordable and accessible for students everywhere. The company creates the worlds best open educational content in 20+ subjects that align to more than 1,000 popular college textbooks. Boundless integrates learning technology into all its premium books to help students study more efficiently at a fraction of the cost of traditional textbooks. The company also empowers educators to engage their students more effectively through customizable books and intuitive teaching tools as part of the Boundless Teaching Platform. More than 2 million learners access Boundless free and premium content each month across the companys wide distribution platforms, including its website, iOS apps, Kindle books, and iBooks. To get started learning or teaching with Boundless, visit boundless.com.boundless.com Free to share, print, make copies and changes. Get yours atAbout Boundless Day-to-Day Needs Capital Expenditures Alternate Sources of Funds Credit Operations Purchasing Inventory Operating Funds Financial Management > Operating Funds Free to share, print, make copies and changes. Get yours at m=direct&utm_source=boundless The International Financial Reporting Standards (IFRS) defines operating cash flow as cash generated from operations less taxation and interest paid, investment income received and less dividends paid. "Cash and cash equivalents" on the balance sheet are the most liquid assets found on this statement. They are assets that are readily convertible into cash, such as money market holdings, short-term government bonds or Treasury bills, marketable securities, and commercial paper. Cash flow forecasting or cash flow management is a key aspect of the financial management of a business, because planning for future cash requirements can help to avoid a liquidity crisis in the business. Day-to-Day Needs Free to share, print, make copies and changes. Get yours at /financial-management-18/operating-funds-126/day-to-day-needs ?campaign_content=book_6020_section_126&campaign_term=Business&utm_campaign=powerpoint&utm_medium=direct&utm_source=bo undless Liquidity View on Boundless.com Financial Management > Operating Funds Capital expenditures are needed to bring a project to a commercially operable status. Whether a particular cost is capital or not depends on many factors, such as accounting rules, tax laws, and materiality. Capital costs include expenses for tangible goods, such as the purchase of plants and machinery, as well as expenses for intangibles assets, such as trademarks and software development. A capital expenditure cannot be deducted in the year in which it is paid or incurred and must be capitalized. The general rule is that if the acquired property's useful life is longer than the taxable year, then the cost must be capitalized. Capital Expenditures Free to share, print, make copies and changes. Get yours at /financial-management-18/operating-funds-126/capital-expenditures ?campaign_content=book_6020_section_126&campaign_term=Business&utm_campaign=powerpoint&utm_medium=direct&utm_source=bo undless The construction of a building requires the use of capital. View on Boundless.com Financial Management > Operating Funds Cash inflows and outflows can originate from three types of activities: operating, investing, and financing. Operating activities that generate cash flows include receipts from the sale of goods or services; receipts from the sale of loans, debt, or equity instruments in a trading portfolio; and interest received on loans. Cash inflows from investing activities involve non-current assets, such as sales of land, building, equipment, and marketable securities; loans from suppliers; and payments related to mergers and acquisitions. Financing activities include the inflow of cash from investors, such as banks and shareholders, proceeds from issuing short-term or long-term debt; sale of repurchased company shares (treasury stock); for non-profit organizations, receipts of donor-restricted cash; and sale of the company's stock. Alternate Sources of Funds Free to share, print, make copies and changes. Get yours at /financial-management-18/operating-funds-126/alternate-sources-of-funds ?campaign_content=book_6020_section_126&campaign_term=Business&utm_campaign=powerpoint&utm_medium=direct&utm_source=bo undless Cash Flow Statement View on Boundless.com Financial Management > Operating Funds Credit is sometimes not granted to a person or business with financial instability or difficulty. Companies frequently offer credit to their customers as part of the terms of a purchase agreement. A line of credit is any credit source extended to a business or individual by a bank or other financial institution and may take several forms. A revolving credit line provides a borrower with a maximum aggregate amount of capital, available over a specified period of time; it allows the borrower to draw down, repay, and re-draw credit amounts advanced to her by the available capital during the term of the debt. In a loan, the borrower initially receives or borrows an amount of money, called the "principal,", from the lender and is obligated to pay back or repay an amount with interest to the lender at a later time. Credit Operations Free to share, print, make copies and changes. Get yours at /financial-management-18/operating-funds-126/credit-operations ?campaign_content=book_6020_section_126&campaign_term=Business&utm_campaign=powerpoint&utm_medium=direct&utm_source=bo undless Loans can weigh a business down. View on Boundless.com Financial Management > Operating Funds The scope of inventory management includes items such as: stock replenishment lead time, carrying costs of inventory, asset management, and inventory forecasting. There are four basic reasons for keeping an inventory: time lags present in the supply chain, the maintenance of inventory for consumption during variations in lead time, inventories maintained to meet uncertainties in demand and supply, and economies of scale. Purchasing refers to a business or organization acquiring goods or services to accomplish the goals of its enterprise. Companies generally use operating funds to finance their purchasing program. One of the goals of purchasing inventory is to acquire goods at the most advantageous terms for the buying entity (the "Buyer"). Purchasing Inventory Free to share, print, make copies and changes. Get yours at /financial-management-18/operating-funds-126/purchasing-inventory ?campaign_content=book_6020_section_126&campaign_term=Business&utm_campaign=powerpoint&utm_medium=direct&utm_source=b oundless Clothing Retailers Should Have Sufficient Inventory On Hand View on Boundless.com Financial Management > Operating Funds Free to share, print, make copies and changes. Get yours atAppendix Key terms amortize To reduce (a debt, liability, etc. ) gradually or in installments. creditor A person to whom a debt is owed. debtor A person or firm that owes money; one in debt; one who owes a debt economies of scale The characteristics of a production process in which an increase in the scale of the firm causes a decrease in the long-run average cost of each unit. expenditure Amount expended; expense; outlay. International Financial Reporting Standards International accounting standards that provide a common global language for business affairs, so that company accounts are understandable and comparable across international boundaries. lead time The amount of time between the initiation of some process and its completion, e.g. the time required to manufacture or procure a product; the time required before something can be provided or delivered. liquidity An asset's ability to become solvent without affecting its value; the degree to which it can be easily converted into cash. non-current assets assets and property not easily converted into cash; a fixed/non-current asset can also be defined as an asset not directly sold to a firm's consumers/end-users Trademark A word, symbol, or phrase used to identify a particular company's product and differentiate it from other companies' products. Free to share, print, make copies and changes. Get yours atFinancial Management Cash Flow Statement The cash flow statement shows cash inflows and outflows for a specific reporting period and distinguishes between three types of activities that generate or use cash: operating, investing, and financing. Free to share, print, make copies and changes. Get yours atWikimedia Foundation. "File:11 Statement Cash Flows Trust Funds.jpg - Wikimedia Foundation." CC BY-SAView on Boundless.comCC BY-SAon Boundless.com Financial Management Loans can weigh a business down. The use of credit is a necessity in business and should be managed wisely. Free to share, print, make copies and changes. Get yours atFlickr. "3D Shackled Loans | Flickr - Photo Sharing!." CC BY View on Boundless.comCC on Boundless.com Financial Management Clothing Retailers Should Have Sufficient Inventory On Hand Inventory purchases should be carefully managed to prevent overstocking merchandise or having inventory shortages. Free to share, print, make copies and changes. Get yours atFlickr. "Handmade wardrobe for Sidra | Flickr - Photo Sharing!." CC BYView on Boundless.comCC BYhttp://www.flickr.com/photos/verypurpleperson/ /View on Boundless.com Financial Management The construction of a building requires the use of capital. The funds used to construct and put a building into use are capital expenditures. Free to share, print, make copies and changes. Get yours atFlickr. "Construction buildings | Flickr - Photo Sharing!." CC BY-SAView on Boundless.comCC BY-SAhttp://www.flickr.com/photos/kalmyket/ /View on Boundless.com Financial Management Liquidity Liquidity is essential for businesses, because it allows them to meet daily operating needs. Free to share, print, make copies and changes. Get yours atFlickr. "All sizes | money making strategy | Flickr - Photo Sharing!." CC BY View on Boundless.comCC on Boundless.com Financial Management Interest Rates Long-term interest rate statistics for non-Euro countries plus Greece, Portugal, and Ireland. Free to share, print, make copies and changes. Get yours atWikimedia. "Long term interest rates." CC BY-SAView on Boundless.comCC BY-SAhttp://commons.wikimedia.org/wiki/File%253ALong_term_interest_rates.pngView on Boundless.com Financial Management Free to share, print, make copies and changes. Get yours atFinancial Management Which of the following is NOT a characteristic of cash and cash equivalents? A) Insignidicant risk of change in value B) Refers to currency C) Cash flow forecasting is a key aspect of financial management D) Long-term Free to share, print, make copies and changes. Get yours atBoundless - LO. "Boundless." CC BY-SA 3.0BY-SA 3.0http://www.boundless.com/ Financial Management Which of the following is NOT a characteristic of cash and cash equivalents? A) Insignidicant risk of change in value B) Refers to currency C) Cash flow forecasting is a key aspect of financial management D) Long-term Free to share, print, make copies and changes. Get yours atFinancial Management Which of the following capetal expendistures are capitalized? A) All of these answers B) Restoring property C) Acquiring a new business D) Upgrading an asset Free to share, print, make copies and changes. Get yours atBoundless - LO. "Boundless." CC BY-SA 3.0BY-SA 3.0http://www.boundless.com/ Financial Management Which of the following capetal expendistures are capitalized? A) All of these answers B) Restoring property C) Acquiring a new business D) Upgrading an asset Free to share, print, make copies and changes. Get yours atFinancial Management Which of the following cash inflows is considered to be an investing cash flow? A) Interest received on loans B) Sales of repurchased shares C) Dividends received D) Payments of M&A Free to share, print, make copies and changes. Get yours atBoundless - LO. "Boundless." CC BY-SA 3.0BY-SA 3.0http://www.boundless.com/ Financial Management Which of the following cash inflows is considered to be an investing cash flow? A) Interest received on loans B) Sales of repurchased shares C) Dividends received D) Payments of M&A Free to share, print, make copies and changes. Get yours atFinancial Management What in unique about an annuity loan repayment structure? A) The borrower can draw down credit, repay and re-draw B) The money is paid back in regular installments C) Interest is paid only on money actually withdrawn D) Each installment is the same amount Free to share, print, make copies and changes. Get yours atBoundless - LO. "Boundless." CC BY-SA 3.0BY-SA 3.0http://www.boundless.com/ Financial Management What in unique about an annuity loan repayment structure? A) The borrower can draw down credit, repay and re-draw B) The money is paid back in regular installments C) Interest is paid only on money actually withdrawn D) Each installment is the same amount Free to share, print, make copies and changes. Get yours atFinancial Management When a few suppliers' credentials and history are analyzed with the purpose of selecting one, it is called: A) Shopping B) Buying C) Blanketing D) Mastering Free to share, print, make copies and changes. Get yours atBoundless - LO. "Boundless." CC BY-SA 3.0BY-SA 3.0http://www.boundless.com/ Financial Management When a few suppliers' credentials and history are analyzed with the purpose of selecting one, it is called: A) Shopping B) Buying C) Blanketing D) Mastering Attribution Wikipedia. "Operating cash flow." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Operating_cash_flow Wikipedia. "Cash and cash equivalents." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Cash_and_cash_equivalents Wikipedia. "International Financial Reporting Standards." CC BY-SA 3.0BY-SA 3.0Wikipedia. "Cash flow forecasting." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Cash_flow_forecasting Wiktionary. "liquidity." CC BY-SA 3.0BY-SA 3.0http://en.wiktionary.org/wiki/liquidity Wikipedia. "Capital spending." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Capital_spending Wikipedia. "Capital expenditure." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Capital_expenditure Wiktionary. "expenditure." CC BY-SA 3.0BY-SA 3.0http://en.wiktionary.org/wiki/expenditure Wikipedia. "Capital cost." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Capital_cost Wiktionary. "amortize." CC BY-SA 3.0BY-SA 3.0http://en.wiktionary.org/wiki/amortize Wikipedia. "Trademark." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Trademark Wikipedia. "Cash flow forecasting." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Cash_flow_forecasting Wikipedia. "Cash flow statement." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Cash_flow_statement#Operating_activities Wikipedia. "non-current assets." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/non-current%20assets Wikipedia. "Loan." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Loan Wikipedia. "Line of credit." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Line_of_credit Wikipedia. "Revolving credit." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Revolving_credit Free to share, print, make copies and changes. Get yours atFinancial Management Wiktionary. "debtor." CC BY-SA 3.0BY-SA 3.0http://en.wiktionary.org/wiki/debtor Wiktionary. "creditor." CC BY-SA 3.0BY-SA 3.0http://en.wiktionary.org/wiki/creditor Wikipedia. "Credit (finance)." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Credit_(finance) Wikipedia. "Purchasing." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Purchasing Wikipedia. "Inventory turnover." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Inventory_turnover Wikipedia. "Inventory." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/Inventory Wikipedia. "economies of scale." CC BY-SA 3.0BY-SA 3.0http://en.wikipedia.org/wiki/economies%20of%20scale Wiktionary. "lead time." CC BY-SA 3.0BY-SA 3.0http://en.wiktionary.org/wiki/lead+time Free to share, print, make copies and changes. Get yours atFinancial Management