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The Trade Creditor's Guide to the Statement of Cash Flows

The Trade Creditor's Guide to the Statement of Cash Flows


The statement of cash flow's primary purpose is to provide information regarding a company's cash receipts and
cash payments. The statement complements the income statement and balance sheet. When credit decisions are
made, many factors must be assessed. The income statement and balance sheet provide information about some of
these factors, the cash flow statement provides information about the other factors.
Over the life of a company, total net income and net cash inflow will equal. However, since income determination is
based on accrual accounting, income and cash flow will rarely equal in an annual accounting period.

Cash Is King
The importance of cash flow to the short term credit grantor is based on a simple fact, trade obligations are
satisfied with cash not profit. It is possible for a firm to be very profitable and not be able to service its obligations.
Short-term liquidity can also be achieved by deferring payments of current obligations, however, eventually the
company's ability to generate cash flow through the deferral of payment of current liabilities will be exhausted. This
statement is useful for decision making because it provides relevant and reliable information for predicting cash
flows.
The cash flow statement is an important analytical tool that the trade creditor can use to determine if a customer is
able to generate sufficient cash to meet its trade obligations. The ability of a company to adapt during a period of
financial adversity, to obtain financing, and generate adequate amounts of cash for specific purposes are very
important factors in the review process. Using the cash flow statement in the credit analysis process can help users
evaluate a customer's solvency, liquidity position, and its financial flexibility.

The significance of the cash flow analysis


The cash flow statement's importance to the analyst in identifying financially troubled companies is unquestioned. It
provides valuable information about the quality of earnings. The higher the correlation between income and cash
flow, the higher the earnings quality. The statement also provides insight into how effective the management team is
at utilizing available resources and the firms ability to generate cash flows in the future. It provides a picture of
where the cash comes from and where it goes.
The statement reports the cash provided and used by the operating, investing, and financing activities of a company
during an accounting period. The usefulness of this information has been recognized for many years by statement
users. In 1987, the Financial Accounting Standards Board issued Statement No. 95, which requires that a statement
of cash flows accompany the income statement, balance sheet and statement of retained earnings.
The statement of cash flows explains the change during the period in cash and cash equivalents. Cash includes
currency on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily
convertible to cash. Statement No. 95 requires that cash receipts and payments be classified as operating, investing
and financing activities. The statement of cash flows must summarize the cash flows so that net cash provided or
used by each of the three types of activities is reported. Beginning and ending cash must be reconciled based on the
net effect of these activities.

Operating activities
The statement provides information about the cash generated from a company's primary operating activities.
Operating activities relate to a company's primary revenue-generating activities, and cash flows from operating
activities are the cash effects of transactions and economic events included in the determination of income.
Operating activities that generate cash inflows include customer collections from sales of their primary products or
services, receipts of interest and dividends and other operating cash receipts. Operating activities that create cash
outflows include payments to suppliers, payments to employees, interest payments, payment of income taxes and
other operating cash payments.

Investing activities
Investing activities include lending money and collecting on those loans, buying and selling productive assets that
are expected to generate revenues over long periods, and buying and selling securities not classified as cash
equivalents. Cash inflows generated by investing activities include sales of long-lived assets such as property, plant,

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The Trade Creditor's Guide to the Statement of Cash Flows

and equipment, sales of debt or equity instruments and the collection of loans.

Financing activities
Financing activities include borrowing and repaying money from creditors, obtaining resources from owners and
providing both a return on their investment and a return of their investment. The return on investment is provided in
the form of dividends.
The statement of cash flows provides information about how the company invests its cash on equipment and other
long term investments, and the cash provided if it disposes of fixed assets. If the firm uses debt or equity to expand
its operations, it is disclosed in the financing activities. Also, if the firm uses cash to retire debt, it appears in the
statement.

Income flows and cash flows


The income statement and balance sheet are based on accrual accounting which was developed based on the
concept of matching. The matching principle states that revenues generated and the expenses incurred to generate
those revenues should be reported in the same income statement. This emphasizes the cause-and-effect association
between revenue and expense. Many revenues and expenses result from accruals and allocations that do not affect
cash. A company can operate at a profit and continually be short of cash. It can also generate huge inflows of cash
from operations and still report a loss. The statement of cash flows can explain how these situations might occur.
Answers to these questions cannot be found in the other financial statements.
Since net income is based on accrual accounting, income and cash flows are rarely equal in short time periods. A
company may operate for several years because its cash inflows exceed its required cash payments, even though the
company may not be profitable in the long run.
There are two classes of items that cause differences between income flows and cash flows: items that appear on the
income statement that do not represent inflows and outflows of cash, such as depreciation, or items whose cash
effects do not relate to operating activities, such as gains on the sale of depreciable assets; and operating cash
inflows and outflows that do not appear on the income statement, that must be reported on the statement of cash
flows. For example a company may collect in the current period cash arising from credit sales made in a previous
period.

Preparing the Statement of Cash Flows


Information used to prepare this statement is obtained from the income statement for the year and comparative
balance sheets for the last two years. Net income is adjusted for deferrals and accruals. The purpose of these
adjustments is to convert the accrual basis income statement to cash flows.
As discussed earlier, the statement follows an activity format and is divided into three sections: operating, investing
and financing activities. There are two methods of calculating and reporting the net cash flow from operating
activities. The direct method reports gross cash inflows and gross outflows from operating activities. The indirect
method reconciles net income with net cash flow from operating activities by adjusting net income for deferrals,
accruals, and items that effect investing and financing cash flows. Both indirect and direct methods yield identical
figures for net cash flow from operating activities because the underlying accounting concepts are the same.

Exhibit 1
Star Light Corporation
Income Statement
For the year ended
December 31, 1999
Sales
Cost of Goods Sold
Gross Profit
Salaries Expense
Depreciation and Amortization

$250,000
120,000
130,000
40,000
25,000

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The Trade Creditor's Guide to the Statement of Cash Flows

Operating Profit
65,000
Other Income (Expense)
Gain on the Sale of Equipment 10,000
Interest Expense
(10,000)
Net Income

$65,000

A practical approach for preparing the statement of cash flows is to first determine the net increase in cash and cash
equivalents for the period. This amount serves as a control figure, the net cash inflow or outflow must agree with
the net change in the cash account on the comparative balance sheets. For illustrative purposes, we will use the
Income Statement data from the current year (Exhibit 1) and the balance sheets from the prior two years that have
been combined on the Cash Flow Worksheet (Exhibit 2) of Star Light Corporation. To complete our first step we
begin with the balance sheet data, by taking the cash balance of $90,000 from the most recent balance sheet and
subtracting the cash balance of $50,000 from the prior year, which results in an increase in cash of $40,000. The
cash flow statement must balance to this control number.

Exhibit 2
Star Light Corporation
Cash Flow Worksheet
Comparative Balance Sheets Assets
1998

1999

Account
Balance
Change

Cash
Inflow /
Outflow

Activity
Type

Assets
Cash
Accounts Receivable

$50,000

$90,000 $40,000 Control #

Cash

70,000

60,000 (10,000)

Inflow

Operating

Inventories

100,000

75,000 (25,000)

Inflow

Operating

Plant and Equipment

200,000

190,000 (10,000)

Inflow

Investing

Accumulated Depreciation

(40,000) (35,000)

5,000

Outflow

Operating

8,000

Outflow

Investing

Land

30,000

38,000

410,000

418,000

Accounts Payable

70,000

80,000

10,000

Inflow

Operating

Salaries Payable

10,000

15,000

5,000

Inflow

Operating

100,000

100,000

Premium on Bonds Payable

10,000

8,000

Common Stock

Total Assets

Liabilities and
Stockholders' Equity

Bonds Payable

Contributed Capital in Excess


of Par
Retained Earnings
Total Liabilities and
Stockholders' Equity

0 No Change

Financing

(2,000)

Outflow

Financing

80,000

60,000 (20,000)

Outflow

Financing

40,000

30,000 (10,000)

Outflow

Financing

Inflow

* Operating Financing

100,000

125,000

25,000

$410,000 $418,000

* Net Income (Operating) less Dividends Paid (Financing)

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The Trade Creditor's Guide to the Statement of Cash Flows

Next we calculate the change in each balance sheet account, determine if the change is a cash inflow or outflow, and
the activity that the account should be included in. The change in account balances is reflected in the Account
Balance Change column (Exhibit 2) of our worksheet. It is calculated by subtracting the prior year account balance
from the current year balance. For example, Accounts Receivable in 1996 was $60,000 compared to $70,000 in
1995, which resulted in a $10,000 decrease in receivables. This process is continued for each of the balance sheet
accounts.
After calculating the account balance change, we have to determine if the balance change is an inflow or an outflow
of cash. To make this task simple we can use Table I as a guide to determine the effect of each balance change. The
table states that a decrease in an asset balance and an increase in a liability or equity account are cash inflows. The
opposite holds true for increases in an asset balance or a decrease in a liability or equity account, which results in a
cash outflow.

Table I
Cash Effects of Balance Sheet Account Changes
Cash Inflow

Cash Outflow

A Decrease in an Asset Account

An Increase in an Asset Account

An Increase in a Liability Account A Decrease in a Liability Account


An Increase in an Equity Account A Decrease in an Equity Account
The chart is straightforward if you think about the effect a change on an account has on cash. For example, Table I
indicates that a decrease in an asset account is a cash inflow. Accounts receivable decreased by $10,000 from 1995
to 1996. If there was a decrease in accounts receivable it would make sense that we collected cash. The impact of
the balance sheet flow changes appears in the Inflow/Outflow column. (Exhibit 2)
To complete the development of our Cash Flow Worksheet (Exhibit 2), we must determine if each account balance
change is an operating, investing or financing activity. Using Table II as our guide, beginning with the asset section
of our Cash Flow Worksheet, we review each account. As was discussed earlier, the change in cash and cash
equivalents is the control number that we must balance to. Accounts receivable would be categorized as an
operating activity, because it is related to collections from customers. The change in inventory is classified as an
operating activity, because it is a component of our core operating activities. Plant and Equipment transactions
would be classified as investing, because the sale or purchase of productive assets that are expected to generate
revenues in the future are defined as Investing Activities in Table II. We continue this process until we define the
activity for each of the balance sheet accounts. (Exhibit 2)

Cash Flows from Operating Activities


Generally accepted accounting procedures require that the operating activities section of the cash flow statement be
reported first. A company's operating activities include the transactions associated with the company's primary
products or services. There are two approaches that may be used to report operating activities - the direct method
and the indirect method.

Table II
Cash Flows by Activities
Operating Activities

Inflows of
Cash

Investing Activities

Financing Activities

Collections from Customers

Collection on Loans

Issuance of long-term Debt

Interest Income

Sale of Debt Instruments

Issuance of Equity Securities

Dividends Receipts

Sale of Equity Instruments

Other Operating Cash Receipts Sale of Productive Assets

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The Trade Creditor's Guide to the Statement of Cash Flows

Outflows of Payments to Suppliers


Cash

Purchase of Productive Assets

Payment of Dividends

Payments to Employees

Purchase of Debt Instruments

Acquisition of an Entity's
Own Equity Securities

Interest Payments

Purchase of Equity Instruments Repayment of Amounts


Borrowed

Payment of Income Taxes

Making Loans

Other Operating Cash


Payments

The Direct Method


Our analysis will begin by preparing the Cash Flows from Operating Activities using the Direct Method. Under the
Direct Method the following sources of operating cash inflows and outflows are reported:
Cash collected from customers, lessees, licensees, and similar parties
Interest and dividends received
Any other operating cash receipts
Cash paid to employees
Cash paid to suppliers of goods and services
Interest paid
Income taxes paid
Any other operating cash payments
It is important to remember that we are using financial statements that were created using accrual accounting and
we are converting these statements into cash accounting. Net income (accrual accounting) and net cash flow (cash
accounting) will almost never be the same because of noncash transactions that impact the performance of a
business. For example, depreciation expense, a noncash expense, appears on the income statement under accrual
accounting but is not part of net cash flow. Using Table III as a guide, and extracting data from the Income
Statement (Exhibit 1) and the Cash Flow Worksheet (Exhibit 2), we can now prepare the Cash Flows from
Operating Activities.

Table III
Cash Flows from Operating Activities using the Direct Method
Cash Collections from
Customers

Sales - increase (+ decrease) in Accounts Receivable + increase


( - decrease) in Deferred Revenue

Cash Payments to
Suppliers

Cost of Goods Sold + increase ( - decrease) in Inventory increase ( + decrease) in Accounts Payable

Cash Payments for


Salaries

Salary expense - increase ( + decrease) in Accrued Salaries


Payable

Cash Payments for Other


Operating Expenses

Other Operating Expenses - Depreciation and Amortization


Expense for Period + increase ( - decrease) in Prepaid Expenses increase ( + decrease) in Accrued Operating Expenses

Cash Revenue from


Interest

Interest Revenue - increase (+ decrease) in Interest Receivable

Cash Paid for Interest

Interest Expense - increase ( + decrease) in Accrued Interest


Payable

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The Trade Creditor's Guide to the Statement of Cash Flows

Cash Revenue from Dividends Investment Income - increase ( + decrease) in Investment


Account
Cash Paid for Taxes

Tax Expense - increase (+ decrease) in Accrued Taxes Payable decrease ( + increase) in Prepaid Tax

Based on the formulas provided in Table III, Star Light has the following cash flows from its Operating Activities:
Cash Collections from Customers = $250,000 + 10,000 = $260,000
Cash Payments to Suppliers = $120,000 - 25,000 - 10,000 = $85,000
Cash Payments for Salaries = $40,000 - 5,000 = $35,000
Cash Payments for Interest = $10,000 + 2,000 = $12,000 *
* Interest expense for the period equals interest paid during the period plus the decrease in Premium on Bonds Payable

By combining the above cash transactions into statement form, we complete the Operating Activities section of the
statement using the Direct Method. (Exhibit 3)

Exhibit 3
Star Light Corporation
Statement of Cash Flows
For the Year Ended December 31, 1999
Cash Flows from Operating Activities (Direct Method)
Cash collections from Customers

$260,000

Cash Payments to Suppliers

(85,000)

Cash Payments for Salaries

(35,000)

Cash Payments for Interest

(12,000)

Net Cash Provided by Operating Activities $128,000

The Indirect Method


The second method that can be used to calculate the Cash Flows from Operating Activities is referred to as the
Indirect Method. Using the Indirect Method, cash flows from Operating Activities are reported by adjusting net
income for revenues, expenses, gains, and losses that appear on the income statement but do not have an effect on
cash.
Using Table IV as a guide, and Table I and Table V to determine if the change is an inflow or outflow, we can
extract data from the Income Statement (Exhibit 1) and Cash Flow Worksheet (Exhibit 2) to prepare the Cash Flows
from Operating Activities using the Indirect Method. (Exhibit IV)

Table IV
Cash Flows from Operating Activities using the Indirect Method
Net Income
Adjustments to reconcile net income to net
cash provided by operating activities

+ Depreciation
- Amortization of Bond Premium

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The Trade Creditor's Guide to the Statement of Cash Flows

+ Amortization of Bond Discount


- Gain on Sale of Equipment
+ Loss on Sale of Equipment
+ Decrease in Accounts Receivable
- Increase in Accounts Receivable
+ Decrease in Inventory
- Increase in Inventory
- Decrease in Accounts Payable
+ Increase in Accounts Payable
- Decrease in Accrued Expenses
+ Increase in Accrued Expenses
+ Decrease in Prepaid Expenses
- Increase in Prepaid Expenses
- Decrease in Taxes Payable
+ Increase in Taxes Payable

Table V
Cash Effects of Income Statement Account Changes
Cash Inflow

Cash Outflow

Revenue Accounts are Sources of Cash Expense Accounts are Uses of Cash
Based on the formula provided in Table IV, we are able to reconcile Star Light's net income with net cash provided
by its Operating Activities. (Exhibit 4)

Exhibit 4
Star Light Corporation
Statement of Cash Flows
For the Year Ended December 31, 1999

Cash Flows from Operating Activities


(Indirect Method)
Net Income

$65,000

Adjustments to reconcile net income to net cash


provided by operating activities
25,000
Depreciation Expense
(2,000)
Amortization of Bond Premium
(10,000)
Gain on Sale of Equipment
10,000
Decrease in Accounts Receivable
25,000

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The Trade Creditor's Guide to the Statement of Cash Flows

Decrease in Inventories
10,000

Increase in Accounts Payable

5,000

Increase in Salaries Payable


Net Cash Provided by Operating Activities

$128,000

A comparison of the Direct Method with the Indirect Method indicates that either method will generate the same
results. The Operating Activities of Star Light Corporation generated $128,000 in net cash during 1996.

Cash Flows from Investing Activities


As we have discussed, Investing Activities include purchases and sales of productive assets that are expected to
generate revenues over long periods of time, purchases and sales of securities that are not classified as cash
equivalents, and lending money and collecting the interest and principal on those loans. An analysis of Star Light
Corporation's Investing Activities using the Cash Flow Worksheet (Exhibit 2) reveals a decrease in the plant and
equipment account and an increase in the land account. However, a review of the Income Statement (Exhibit 1)
reveals a gain on the Sale of Equipment. After further investigation you determine that during 1996 machinery with
an original cost of $50,000 and accumulated depreciation of $30,000 was sold for $30,000, resulting in a noncash
gain that has already been adjusted out of the operating activities. However, the sale of the equipment generated
$30,000 in cash.
Using this information we must determine if any equipment was purchased in 1996. From the Cash Flow Worksheet
(Exhibit 2) we determine that the plant and equipment account decreased by $10,000. Since the equipment that was
sold had an original cost of $50,000, which was removed from the account when the equipment was sold, additional
equipment costing $40,000 must have been purchased for cash. This purchase of equipment decreased cash by
$40,000.
Beginning Equipment + Purchases $200,000

Sales

= Ending Equipment

+ $40,000 - $50,000 =

$190,000

From a review of the Cash Flow Worksheet (Exhibit 2) we can infer that land was purchased for $8,000 cash. By
combining these three transactions we can develop the investing section of the cash flow statement.

Exhibit 5
Star Light Corporation
Statement of Cash Flows
For the Year Ended December 31, 1999
Cash Flows from Investing Activities
Sale of Equipment
$30,000
Purchase of Equipment
($40,000)
Purchase of Land
($8,000)
Net Cash Used by Investing Activities ($18,000)

Cash Flows from Financing Activities


The financing activities are the final category of transactions that result in cash inflows and outflows. Financing
activities include borrowing money from creditors and repaying the amounts borrowed, and obtaining resources

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The Trade Creditor's Guide to the Statement of Cash Flows

from owners and providing them with both a return of their investment and a return on their investment in the form
of dividends.
A review of the Cash Flow Worksheet (Exhibit 2) indicates that there was a reduction in the common stock account.
After an investigation it is determined that Star Light Corporation retired common stock with a book value of
$30,000 for $35,000. On the statement of cash flows, this financing transaction would be reported as the retirement
of common stock requiring $35,000 in cash. This transaction would have also reduced retained earnings by $5,000.
Cash dividends for 1996 totaled $35,000. This financing transaction also reduced cash. By combining these two
transactions we can develop the financing section of the cash flow statement. (Exhibit 6)

Exhibit 6
Star Light Corporation
Statement of Cash Flows
For the Year Ended December 31, 1999
Cash Flows from Financing Activities
Retirement of Common Stock

($35,000)

Payment of Dividends

($35,000)

Net Cash Used by Financing Activities

($70,000)

Reconciling the Cash Account


To complete the statement of cash flow we combine the operating, investing and financing activities into one
statement. The final step is to reconcile the cash account. As was discussed earlier, the beginning cash balance less
the ending cash balance is our control number. A review of the Cash Flow Worksheet (Exhibit 2) indicates that the
cash account increased $40,000 from 1995 to 1996. Since the cash flow statement provides information about how
cash moved within the organization during the year, it makes sense that the sum of these changes should equal the
change in the cash account.

Exhibit 7
Star Light Corporation
Statement of Cash Flows
For the Year Ended December 31, 1999
Cash Flows from Operating Activities
Cash collections from Customers

$260,000

Cash payments to Suppliers

(85,000)

Cash Payments for Salaries

(35,000)

Cash Payments for Interest

(12,000)

Net Cash Provided by Operating Activities

$128,000

Cash Flows from Investing Activities


Sale of Equipment

$30,000

Purchase of Equipment

(40,000)

Purchase of Land

(8,000)

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The Trade Creditor's Guide to the Statement of Cash Flows

10

Net Cash Provided by Operating Activities

(18,000)

Cash Flows from Financing Activities


Retirement of Common Stock
Payment of Dividends
Net Cash Used by Financing Activities

Net Increase in Cash


Cash at Beginning of Year
Cash at End of Year

($35,000)
(35,000)
(70,000)

$40,000
50,000
$90,000

Conclusion
The primary purpose of the cash flow statement is to provide information about a company's cash inflows and
outflows. A secondary purpose is to provide information about the investing and financing activities of the
company. The Star Light Corporation provided an excellent illustration of the basic concepts and procedures
required to prepare a statement of cash flows. Information reported in the statement, when used with other financial
statements provides the analyst with insights about the company's ability to generate future cash flows. It helps the
user understand the differences between a company's income flows and cash flows. The information provided by
the cash flow statement will also help you assess a company's ability to pay its debts and to meet its external
financing needs.

Why Am I Always So Short Of Cash, Even Though I'm Selling More


Than Ever Before?
Frequently Asked Question - Why am I always so short of cash, even though I'm selling more than ever before?
The quick answer is that you are so short of cash BECAUSE things are going so well with your business. While this
may sound impossible, rapid growth often causes a cash strain on your business.
A growing business can be called a "cash sponge". The demands of increasing sales, support services, inventory,
labor costs, etc. can rapidly soak up all those extra dollars a business manager expects to see flowing in when the
sales numbers are rising. Not only does the business have to invest more resources in inventory and labor, but
receivables typically grow along with sales. So, while you are getting busier and busier, you have more and more
tied up in receivables.
For example, if you are able to turn your inventory over five times in a year, you would need an inventory level of
approximately $20,000 to support sales of $100,000. If sales grow to $125,000 then inventory levels would
probably need to rise to $25,000. The demands on the business infrastructure and staff may require overtime from
the present staff or the hiring of more employees. In addition to the increased wages, other costs (unemployment
taxes, workers' compensation, employer's portion of social security payments, supplies, freight, etc.) also rise.
While these costs are all expected, if you sell on terms other than COD, your receivables will also increase from
perhaps $12,500 to roughly $15,600 assuming a constant average receivable period of 45 days. The net result is that
your sales are up, but you are "lending" about $3,000 more to your customers while investing something in excess
of $5,000 more in your business. This $8,000 to $9,000 may represent all or more than the extra profit from your
increased sales. Faster rates of growth and/or lower rates of inventory turnover produce even larger effects meaning
that the cash demands of growth exceed the cash supplies from that growth. These increasing net cash demands are
continuous for as long as the business is growing. If sales become steady, then the extra profits begin to emerge as
extra cash since the costs and receivables levels also stop growing.

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The Trade Creditor's Guide to the Statement of Cash Flows

11

So, how does a business finance growth? There are only two basic sources of financing -- externally generated
funds and internally generated funds. External sources are the ones we all think of when it's time to raise money and
include more investment from the present ownership, bringing others in as investors, borrowings in the form of
loans, or by increasing your obligations to vendors (accounts payable).
The only true long term internal source of funds is profits. The business manager must be constantly vigilant in
maintaining profit margins by watching both pricing and purchasing. However, most businesses are not able to
make as high a percentage profit as would be needed to provide all the funds necessary for rapid growth. So, growth
must occur at a controlled rate or the management must find more external capital. If profits are not constantly
generated, the implications for business longevity are pretty clear. We have seen several mature businesses who
complained of "being undercapitalized and if they could just get a loan" or come up with an investor, they "would
be all right". After digging a bit deeper, we often find that a more than adequate amount of capital has been invested
but the company has not been generating profits for such a long time that they are, in effect, consuming their capital
in supporting the present operations. As an excuse for business difficulty or failure, "undercapitalization" ranks right
up there with "poor management" as being one of those catch-all terms which is often used when one is unsure
what's wrong.
As the investment in machinery, equipment, and inventory rise, so, too must the amount of permanent capital
generated by or invested in the business rise. Even with seasonal or cyclical fluctuations, a growing business
generally has growing demands for permanent capital. There is an old rule of business finance that advocates
matching the length of financing of an asset to the useful life of that asset. It is very dangerous to attempt to finance
long term capital needs with short term capital sources. The manager who uses a short term loan or, worse yet, line
of credit, to finance permanent increases in inventory or the purchase of equipment, is virtually guaranteeing a
future cash crisis. Short term sources of financing should be used only for the purchase of short terms assets like
that portion of inventory that is truly seasonal and will, therefore, be sold during the term of the financing.
This publication was produced by the Delaware Small Business Development Center Network and can be found on
their web site: http://www.be.udel.edu/sbdc. The Center can be contacted at: 102 MBNA America Hall, University
of Delaware, Newark, DE 19716. Phone: (302) 831-1555; Fax: (302) 831-1423
Copyright 1999 Credit Research Foundation
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