The Cash Flow Management And Analysis Of C Company

The cash flow is critical for the existence and development of a corporation, which is the same as blood stream in the body of a human being. A good cash flow can make a corporation grow healthily, once the cash is not enough for the use of corporation, it will probably face up with the plight, and may not carry out the maximum value of the corporation, and even leads to the failure of operation, what is more, a corporation will have to bring to account as a result of not paying due debts.Therefore, it is critical to do well in cash flow management for the existence and development of a corporationThe aim of the management of cash flow is to economize cash and reduce the quantity of the cash we must possess as possible as we can, of course, the quantity of cash must satisfy the need of the working of corporation, so we can put the idle fund into investment, and we will gain more yield. In another word, a corporation should seek a balance between risk reducing and income increasing so as to ascertain the quantity of the cash flow.In this dissertation, it discusses and analyses how to manage cash flow, and how to evaluate the corporation by cash flow. In the first chapter, knowing synoptically about cash flow and management of it, analyzing and explaining the difference between the"retained profits"and"quantity of cash flow"which are important financial indexes, furthermore, introducing the background of the case which is used in the dissertation. In the second chapter, parsing all kinds of analytical methods of cash flow, and taking apart the table of cash flow, which is often used in the analysis of cash flow.In the third chapter, researching the circular management of acceptance or payment of cash flow from the angle of the cash and the cash equivalent. In the last chapter, using two familiar discount evaluation model of free cash flow to evaluate or analyze the value of the corporation. The dissertation consists of theory and case, and taking a certain joint venture as example, which covers the total dissertation.