Question

In: Finance

Explain what a cash-flow calendar accomplishes. Name three techniques to control spending.

Explain what a cash-flow calendar accomplishes. Name three techniques to control spending.

Solutions

Expert Solution

Cah flow calendar is the prediction of time when net cash inflow to the company. It is the prediction of when the customer will pay and when the payment has to be made to the vendor. It is essential for the company to analyse this as it may affect the cash balances within the firm.

The control of spending is very important as it decides the cash flows to the company. The budget may be used in first instances as it will help in predicting tje expected cash flows. The second one could be prioritization of spending where the important spending activty given the importance. The third one could be past behaviours of spending. This can be analysed so that previous mistakes should not take place.


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