Business

• Finance strategy is the process by which an organization determines how to allocate its financial resources.
• Cash flow is the adequate flows of cash in and out of the business over a period of time.

  
  

  Inflows: Sales, Accounts recievable, commissions, Sales of assets, Rents, Interest and dividends

  
  

  Outflows: Payments to suppliers, interest on loans, purchase of assets, loan repayents, drawings, operating expenses
• Equity finance refers to funds raised from investors who become part owners of the company. This can be done through selling shares or issuing new ones.
• Factoring is the selling of accounts receivable for a discounted price to a finance or a specialist finance company. The business saves on the costs in following up on unpaid accounts receivable and debt collection. Factoring is growing in popularity as a strategy to improve working capital.This enables the business to have the cash needed immediately.
• Gross profit = Sales - COGS
• COGS = Opening stock + Purchases - Closing stock
• Net profit = Gross profit - expenses