Week 2 Discussion
To prepare for this Discussion, think about your organization or an organization with which you are familiar. Consider the importance of accounting profit, operating cash flow, net cash flow, and free cash flow for informing how the organization operates with regard to decision making. Also, consider how financial markets can affect future cash flows.
- Analyze the differences among accounting profit, operating cash flow, net cash flow, and free cash flow.
- Identify the key stakeholders in cash flow planning and profit estimation processes in the organization, and explain how they are involved in the processes.
- Analyze the impact of accounting profit, operating cash flow, net cash flow, and free cash flow concepts on decisions in the organization for which you currently work, one that you would like to work for in the future, or a small business you hope to start one day.
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