1. A significant decision we make on a regular basis is whether to put our excess cash into investments. Oftentimes the firm invests in marketable securities. By doing so, we consider the amount of excess cash on hand, and also consider that the investment will be earning interest until such time when it is needed. We can then easily turn the marketable security into cash. The excess cash is then working for us, by bringing in interest income until we need to liquidate the investment account.
2. A second significant decision we make that considers cash flow involves asset purchases. We routinely upgrade ...
The solution gives a detailed discussion regarding at least four significant decisions that must consider cash flow for a company, including why cash flow is important. The solution can be used for any company.