Discussion page and respond to the following:
Explain the value of profits or net income relative to
cash flow over the course of a year of operations.
How does this affect the financial flexibility of the
firm over the course of one year of operations? Explain.
Relative to cash flow, explain the wisdom of extending
payments to vendors for inputs, products, or services rendered to the
last possible date prior to a penalty.
Is there a downside to such a strategy? Explain.
Explain the role of positive cash flow as it relates
to purchases of new equipment (i.e. investment) to facilitate production
quantities or quality.
What might be a critical role of positive cash flow
relative to new product development? Explain.
Relative to an entrepreneur owner of a small firm
seeking to expand his/her geographic footprint, explain the role of
positive cash flow over the course of the year.
When might an entrepreneur owner decide to refrain
from “taking a draw” or “payment” from their
business? Explain.
Describe the wisdom of an entrepreneur owner
“holding excess cash” or “buffer cash” over the
course of a year.
What might the entrepreneur owner use said cash for
over the course of a year? Would new product development be something
they might use this money for? Explain.
