Literature Review on Cash Flows

Cash flow generally means the net inflow and outflow of cash in a company during a specific period of time. It is quite important to manage cash flows in an organisation as the short term and long term obligations of the company are dependent on cash flows. The management needs to be aware of various segments from which cash can be generated and where it will be consumed. As cash is one of the most important assets of a company, the company management needs to efficiently use cash and cash equivalents. This efficient utilisation of cash entails the process of speeding up cash flows (Plewa and Friedlob 1995).

This chapter will cover the literature review for cash flows and the various concepts relevant to cash flows. The following sections will cover previous studies and researches done in the area of cash flow and its application in business. Definitions, opinions and statements from various previous studies are included in this section as secondary research on the basis of which the main research on the techniques of cash flows will be carried out. The concept of cash flows, the importance of cash flows in a company and the ways to mange and speed up the cash flows of a company are discussed in this chapter with reference to different authors and researchers. The concept of cash flows and the various ways of determining and managing cash flows in different organisations are explained. The concepts discussed in this chapter shape the basic structure required for research in the area of speeding up cash flows in organisations. The concept, management and importance of cash flows are explained further in the following sections. The difference of cash flows in small and large business and the importance of cash flows are also discussed in the following sections.

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