Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Explain the flow of funds within an organization

Transcribed Image Text:Raise Funds (cash)
1.External
owners (equity)
- creditors (debts)
2. Internal
- cash dew from operations
- sale of assets
1. funds for reinvestment
2. funds to distribute to owners and
crediters
used
Results in
Acquire Assets
working capital
used
Produce and Sell Products Services
1. services provided or inventories
converted to cash sales and accis recble.
2. AR collected and converted to cash
1. long term
2.
Figure 2
Flow of funds within an organization
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