Here are some suggestions on how to look or get an appointment for antique items: Cash Flow Statement. The cash flow statement is one of the most important financial statements in any business’s financial statement.
From a financial statement, abbreviated as CFS, what makes a business the main source of revenue? What is your financial situation? Ability to pay off debts and expenses; You will be able to evaluate the ability to make money. The CFS combines the other two major financial statements, the profit and loss statement and the balance sheet, to provide more insight into the state of the business, and is often required by law to be a mandatory statement issued by governments.
The CFS, also known as the Cash Flow Statement, covers three main activities. These are:
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(1) Operating Activities.
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(2) Financing Activities.
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(3) Investing Activities.
Operating Activities are sections that describe the inflows and outflows of the core business of a business.
In this case, the revenue from the sale of the business product or service; Payments to suppliers; Monthly interest, taxes, Staff salaries; Depreciation of assets; You will see all the expenses due to the cost of running the business, such as rent.
No matter how well a business sells a business, it can often go bankrupt when it runs out of money. For example, if a business has very high sales but the sales are in debt and the suppliers, the government, etc. do not receive cash from the debt by the time the payment is made, there will be unnecessary fines and penalties. Surcharges often occur and stop operations.
Therefore, weekly, What should be the minimum amount of money in the monthly business? The finance department often has to figure out where to get this money from. How much debt should I collect? How can you avoid becoming over-indebted? What to do if you become the most indebted? Credit policies are often set up to ensure a positive monthly cash flow from operating activities. Since the main profit of the business comes from the operation, you can look at this section and evaluate the performance of the business.
Typically, business owners are able to make a profit from their operations. To increase sales; Reduce costs; Get new markets You can increase your profit margin. In addition to regular operating activities, financing is another business management activity. This can also be found under the Financing Activities of the Cash Flow Statement.
One of the tasks of a financing business is to find sources of funding. We need to find new investors to get bank loans. For example, suppose a business operates at a cost of 50 million kyats and a net profit of 50 million kyats a month from operating activities. So, in terms of interest rate, it means that you get 10 kyats per month from Operating Activities. In addition, the market can be further expanded.
If we can still get the same profit, we can borrow another 50 million kyats with an increase of 3 kyats and take a profit of 7 kyats. If you pay 3 kyats profit as interest, the business will be more profitable. If you have to pay around 10% interest for a whole year, like a bank loan, it would be more reasonable. If not from such banks, will you sell new shares to investors?
In addition, the government’s economic development To increase exports; There are many types of businesses that want to grow as import substitutes for a variety of reasons. For this, special loans and loan programs are usually arranged by the government or agency. For example, it is currently providing loans to SMEs. As a financing activity, what are the special loan schemes? How to do it? What are the standards? Government loans often offer low interest rates, as well as other support such as technology and equipment. Knowledge sharing; Special immunity; Tax relief; Participation in national trade fairs; You can also get access to government TV channels.
This means where you can get the money you need to keep your business afloat when it rains at the right time, for how long, and for how long. Next time, how to use this money for profit is another financing activity for other entrepreneurs.
Also, suppose that you do not have enough time to set aside money in your pocket, and you may suddenly run out of money. So how do you get it? How to proactively plan is an important factor under financing activity. For example, in a large business I once worked for, the CEO had a well-established office in one of his offices and often took out mortgages at the bank.
It’s a big business, but sometimes because of financial constraints, the action plan is to make arrangements for an office space to get the most loans that banks will like, and then mortgage and repay the loan. As more and more work is done, the bank will immediately disburse the required amount of money, without having to go through the process of mortgageing the office.
Some large businesses have been linked to big banks for years, believing in deposits and withdrawals, and then reaching a certain level of confidence. The business owner does not have any cash deposited in the bank, but he does withdraw money up to a certain amount. They often provide business bills. This process is called bank overdraft. You can withdraw more than you have deposited in the bank. Some banks have a set system for how much money a bank overdraft should be given to a customer.
Or when you suddenly need money, you need to determine how much you can get out of it. For example, it is linked to microfinance institutions and can provide hundreds of thousands of dollars in emergencies. Or do you pay your bills by credit card? You need to think about what other methods you can use.
In addition, your business sells shares. If it is a public enterprise, what is the percentage of ownership of your business? So how much profit can you get from Dividend? How much should you buy back your shares from the market or from the shareholders? At what price should you buy? You need to think about doing extra. In addition, how much dividend will be distributed to the shareholders of the business each year? How much will you save for Retain Earnings?
To keep the share price of the business from falling; How to get up? Do I have to issue new shares? You also need to figure out what the price should be for a split, ten, twenty, and so on. For example, when Apple went from $ 10 a share to about $ 100 a share, it split that stock back into $ 10. For this, one shareholder becomes ten and the value is the same. As a result, the ownership of a group could be split into ten, and the value of each group could be as high as most people could buy, leading to a surge in demand and a rise in share price.
The business’s CFS has no loans, no interest payments, no dividend dividends, and the business is considered poor financing, and leverage is often considered difficult to grow. Interest rates If you have to pay dividends, how much does it cost? Which of the above cash equivalents exceeds the amount of income and expenditure? You can know the financing status of the business by analyzing.
Most local businesses are immersed in operating activities and cannot afford financing activities. Most of the time, financing activities are just like getting a bank loan. In addition, under Financing Activities, you need to know. More Get Quotes Here…
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