Making Cash Flow Come Alive and Sensible in the Classroom

Abstract

Cash flow problems are presented often to business students as difficult, abstract enigmas. Nothing could be further from the truth, and this paper presents several different models to demonstrate this conclusion. They range from the simplest accounting identity to the use of linear programming. Moreover, they demonstrate for students that projections of the future, and possible variations of the future, are easily comprehensible procedures. Also, using these models in the capstone business policy course demonstrates how to apply knowledge acquired previously in accounting, economics, and finance courses to total enterprise competitions.