Section 3
Operating Funds
Book
Version 6
By Boundless
By Boundless
Boundless Business
Business
by Boundless
5 concepts
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Day-to-Day Needs
Operating cash flow refers to the daily cash inflows and outflows generated from business revenues earned, excluding certain costs.
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Capital Expenditures
Capital costs are incurred for the purchase of land, buildings, construction of assets, and equipment, etc., used during business operations.
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Alternate Sources of Funds
Funds typically originate from company sales and earning revenue; other cash sources include the sale of non-current assets and company stock.
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Credit Operations
Business operations can require the use of credit, or the transfer of money or property on promise of repayment, to meet operating needs.
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Purchasing Inventory
Inventory management is primarily about specifying the quantity and placement of stocked goods.