Water enters vertically and steadily at a rate of 15 L/s into the sprinkler shown in Fig. P6–69. Both water jets have a diameter of 1.2 cm. Disregarding any factional effects, determine (?a?) the rotational speed of the sprinkler in rpm and (?b?) the torque required to prevent the sprinkler from rotating.
MGMT 3850 Foundations of Entrepreneurship Ch. 12: Managing Cash Flow Valley of death o The time period during which startup companies experience negative cash flows as they ramp up operations, build their customer bases, and become selfsupporting. LO1: Explain the importance of cash management to a small company’s success. Cash is the most important but least productive asset the small business has. An entrepreneur must maintain enough cash to meet the company’s normal requirements without retaining excessively large, unproductive cash balances. Without adequate cash, a small business will fail. Cash management o The process of forecasting, collecting, disbursing, investing, and planning for the cash a company needs to operate smoothly. Cash flow cycle o The time lag between paying suppliers for merchandise or materials and receiving payment from customers. Once entrepreneurs understand their companies’ cash flow cycle, the next step in effective cash management is to analyze it, looking for ways to reduce its length. Business owners should calculate their cash flow cycles whenever they prepare their financial statements. LO2: Differentiate between cash and profits. Cash and profits are not the same. More businesses fail for lack of cash than for lack of profits. Profits, the difference between total revenue and total expenses, are an accounting concept. Cash flow represents the flow of actual cash through a business in a continuous cycle. A business can be earning a profit and be forced out of business because it runs out of cash. Cash flow o A method of tracking a company’s liquidity and its ability to pay its bills and other financial obligations on time by tracking the flow of cash into and out of the business over a period of time. LO3: Understand the five steps in creating a cash budget. The cash budgeting procedure outlined in this chapter tracks the flow of cash through the business and enables the owner to project cash surpluses and cash deficits at specific intervals. Cash budget o A “cash map” showing the amount and the timing of cash receipts and cash disbursements on a daily, weekly, or monthly basis. Step 1: Determining an Adequate Minimum Cash Balance