an estimate of the future cash inflows and outflows
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banana
Go to last place!
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seesaw
Swap points!
Okay!
fairy
Take points!
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baam
Lose 25 points!
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trap
No points!
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rocket
Go to first place!
Okay!
gift
Win 25 points!
Okay!
baam
Lose 15 points!
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thief
Give points!
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25
rocket
Go to first place!
Okay!
fairy
Take points!
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baam
Lose 25 points!
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15
Why is crowdfunding not a good source of finance for a cash shortage ?
Because crowd funding is a slow way to raise a huge amount of money for a specific project. People are not willing to donate money to a company for no reason.
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15
Why do companies try to avoid cash shortages at all costs ?
Because it could mean that the company cannot pay for its short term expenses. This could in turn cause bankruptcy.
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15
Net cash flow
cash inflow minus cash outflow
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15
If cash shortage is predicted, what can the company do to avoid it ?
Delay payments, raise finance (sell inventory, bank loan, resources...), arrange an overdraft with the bank...
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15
How do you call a situation where a company doesn't have any more cash ?
A cash shortage
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15
What do companies use cash for?
Pay suppliers, pay for expenses, pay employees wages