Explain the flow of funds within an organization Raise Funds (cash)1.Externalowners (equity)- creditors (debts)2. Internal- cash dew from operations- sale of assets1. funds for reinvestment2. funds to distribute to owners andcreditersusedResults inAcquire Assetsworking capitalusedProduce and Sell Products Services1. services provided or inventoriesconverted to cash sales and accis recble.2. AR collected and converted to cash1. long term2.Figure 2Flow of funds within an organization

Flow of Funds refers to the flow of money in the business organization. Finance is the blood of the…

Answered: Explain the flow of funds within an…

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Finance

Explain the flow of funds within an organization

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter23: Statement Of Cash Flows

Section: Chapter Questions

Problem 1CE

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Question

Explain the flow of funds within an organization

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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