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пособие ENGLISH ON ECONOMICS AND MANAGEMENT.doc
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2. Group the words into subject groups:

cash flow, cash balance, operational cash flow, investments, capital expenditure, long-life assets, equity, debt repayments, dividends, acquisitions

3. Work with your partner. Read and translate the following word combinations:

financing cash flow, investment cash flow, working capital, cash balance, cash earnings.

4. Read English sentences choosing one of the Russian words in brackets with the proper meaning. This time work in small groups.

1. Cash flow … cash (денежные средства, наличность, кассовый остаток) into or out of a business, a project, or a financial product.

2. The (total) net cash flow of a company over a period (typically a quarter or a full year) is equal to the change (равен остатку, является остатком, нуждается в изменении) in cash balance over this period: positive if the cash balance increases (more cash becomes available), negative if the cash balance decreases.

5. Read the following words and word combinations:

cash balance increase, to be available, cash balance decrease, company’s internal business activities, to remain solvent, long-life assets.

6. Read the following words and expressions and guess their meaning. You may look through the text when doing this exercise.

the total net cash flow, financial product, a full year, to be classified in, to expend as a result, business activities, working capital, acquisitions, the issue of debt and equity, dividends.

7. Scan the text quickly and find the English equivalents of the following words and word expressions:

движение наличности, квартал, положительный остаток наличных средств, сумма денежных средств, внутренняя деятельность компании, долгосрочные активы, капиталовложения, долговые и деловые обязательства, погашение задолженности.

Reading

5. Read this text and define the main idea of this text.

Cash Flow

Cash flow refers to the movement of cash into or out of a business, a project or a financial product. It is usually measured during a specified, finite period of time.

The (total) net cash flow of a company over a period (typically a quarter or a full year) is equal to the change in cash balance over this period: positive if the cash balance increases (more cash becomes available), negative if the cash balance decreases. The total net cash flow is the sum of cash flows that are classified in three areas:

  1. Operational cash flows: Cash received or expended as a result of the company's internal business activities. It includes cash earnings plus changes to working capital. Over the medium term this must be net positive if the company is to remain solvent.

  2. Investment cash flows: Cash received from the sale of long-life assets or spent on capital expenditure (investments, acquisitions and long-life assets).

  3. Financing cash flows: Cash received from the issue of debt and equity or paid out as dividends, share repurchases or debt repayments.