Corporate Finance Learning® on LinkedIn: #finance #cashflow (2024)

𝟯 𝗧𝗬𝗣𝗘𝗦 𝗢𝗙 𝗖𝗔𝗦𝗛 𝗙𝗟𝗢𝗪𝙊𝙋𝙀𝙍𝘼𝙏𝙄𝙉𝙂 𝘾𝘼𝙎𝙃 𝙁𝙇𝙊𝙒𝗜𝗡𝗙𝗟𝗢𝗪𝗦Cash receipts from customers (sales and advances paid)Cash generated from operations𝗢𝗨𝗧𝗙𝗟𝗢𝗪𝗦Payments to suppliers for goods and servicesCash payments to or on behalf of employeesInterest paidIncome taxes paid 𝙄𝙉𝙑𝙀𝙎𝙏𝙄𝙉𝙂 𝘾𝘼𝙎𝙃 𝙁𝙇𝙊𝙒INFLOWSProceeds from the sale of equipmentPrincipal collections from loans and sales of other entitiesInterest received Dividends received 𝗢𝗨𝗧𝗙𝗟𝗢𝗪𝗦Acquisition of subsidiariesPurchase of property and equipment Loans made to other entities𝙁𝙄𝙉𝘼𝙉𝘾𝙄𝙉𝙂 𝘾𝘼𝙎𝙃 𝙁𝙇𝙊𝙒𝗜𝗡𝗙𝗟𝗢𝗪𝗦Proceeds from issuing debtWithdrawal of new loansProceeds from issuing share capital𝗢𝗨𝗧𝗙𝗟𝗢𝗪𝗦Repurchase of entity’s own sharesDividend distribution____________________________ 📌Follow these 35 finance modeling lessons and turn your knowledge into real value.👉 https://lnkd.in/dZwwg6Wj____________________________#finance #cashflow

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When negotiating an operating agreement with partners, determining who makes decisions on capital calls, whether members are required to make commitments, and the priority of loans versus equity are crucial components to consider......While some agreements allow for flexible commitments, others may have punitive measures if members fail to contribute. The decision to structure investments as loans or equity is also important to consider, as loans can help maintain equity without dilution. In part one of our series on operating agreements, we explore the importance of capital calls and the key clauses to consider.

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An important aspect of financial management is the choice of methods of financing for a company’s assets.There are two major sources of finance to a company:📌 Short-term Finance This includes:i) Short-term bank loansii) Trade Payablesiii) Trade Payables iv) Debt factoringv) Operating Leases📌 Long-term FinanceThis includes: i) Equity Financeii) Debt Financeiii) Finance Leases#accounting #financingacompany #financialmanagement

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The cash flow statement helps assess a company's ability to generate and manage cash.The three main sections you should know of are:Operating Activities: Indicates the cash generated or used by the company's core operations. This includes cash received from customers (cash inflows) and cash paid to suppliers (cash outflows).Investing Activities: The cash flows related to the company's investments in long-term assets and other investment activities. This includes cash flows related to the purchase or sale of property, plant, equipment etc.Financing Activities: The cash flows related to the company's financing activities, such as raising capital or repaying debt. This includes cash flows from issuing or repurchasing shares, obtaining or repaying loans, and paying dividends.The cash flow statement helps stakeholders understand how cash is being generated, utilized, and whether the company has sufficient cash to meet its financial obligations.#Cashflow #Cashinflows #Cashoutflows #Financialobligations

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CASH FLOW STATEMENT is one of the important component of financial statements of a company.CFS consists of cash transactions (inflow/outflow) which are classified under 3 categoriesa) OPERATING ACTIVITIES - This head includes the amount of cash generated from doing business operations only, in other words, a favourable cash flow from operating activity is a good sign that the company is actually earning money by doing business.b) INVESTING ACTIVITIES - This head includes transactions which are only related to purchase / sale of investments , a negetive value in cash flow under this head is a green flag that the company has enough funds so it's investing in for getting return ( or investing for expansion)c) FINANCING ACTIVITIES - All other items mainly related to Capital, borrowings, interest and dividend payable,etc comes under this head.Summing up the cash flows from 3 activities we can conclude that actual increase or decrease in the cash of the entity. #business #money #investments #investing #financialstatements

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Our goal is to make financing as smooth and trouble-free as possible. 💸 #Financing #FinancingServices #Finance #Finances #FinancingOptions #FinancialTips #FinancialConsultant #FinancialFreedom #FinancialAdvisor #CreditAndLoans #GetHouseReady

📊 Understanding the Impact of Transactions on Financial Statements 🔄Let's dissect a comprehensive example transaction and observe its ripple effect across the three key financial statements:🔹 Example Transaction: A company purchases new equipment for $50,000, financing the purchase with a combination of $20,000 cash and a $30,000 bank loan.1️⃣ Income Statement:Impact: No immediate impact on the income statement as this transaction doesn't involve revenue or expenses.2️⃣ Balance Sheet:Assets: Equipment increases by $50,000.Liabilities: Bank loan increases by $30,000.Equity: No change in equity.Cash: Decreases by $20,000 ($50,000 equipment purchase - $20,000 cash payment).3️⃣ Cash Flow Statement:Operating Activities: No impact from this transaction.Investing Activities: Outflow of $50,000 for the equipment purchase.Financing Activities: Inflow of $30,000 from the bank loan.By dissecting this transaction, we witness how it intertwines with each financial statement:The balance sheet reflects the acquisition of assets and corresponding liabilities.The cash flow statement delineates the cash inflow from financing and the outflow from investing activities.The income statement remains unaffected as the transaction doesn't involve revenue or expenses.Understanding these interconnections equips stakeholders to gauge a company's financial health and make informed decisions. 📈💼#knowledgesharing #financeandaccounting #Finance #FinancialStatements #BusinessTransactions #DecisionMaking #InvestingInsights #LinkedInLearning

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In this report we discuss a less talked about variant of embedded finance

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