Purchase Solution

Profits and Cash Flow & Budgets

Not what you're looking for?

Ask Custom Question

Please help me with the following questions. I need more insight.

1. What is the difference between profits and cash flow?
2. Why can a company outgrow its cash?
3. What is the relationship between profit margins and growth capacity?

And:

1. Who should be involved in the development of the budget?
2. Why is it important to have management approval of a budget?
3. To what extent does the budget serve as a goal and to what extent does the budget serve as a roadmap for management?

Purchase this Solution

Solution Summary

This solution explains the difference between profits and cash flow, and what a company can do to outgrow its cash. It also discusses the relationship between profit margins and growth capacity. It also discuses who should be involved in the development of the budget and why it is important to have management approval of a budget. Finally and by example, it examines to what extent the budget serves as a goal and to what extent the budget serves as a roadmap for management. Research validated, with references provided.

Purchase this Solution


Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.