Finance and business

5 important questions on Finance and business

Depreciation for tax purpose is determined by using..

MACRS

What are investment flows

cash flows associated with purchase of both fixed assets and equity investments in other firms

What are financing flows

cash flows that result from debt and equity financing transaction; include incurrence and repayment of debt, cash inflow from the sale of stock, and cash outflows
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Two key aspects of financial planning

1. Cash planning; involves the preparation of the firm's cash budget
2. Profit planning; involves preparation of pro forma statements

How do you describe the financial planning process

it begins with long-term or strategic, financial plans that in turn guide the formulation of short-term, or operating, plans and budgets.

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