Week 10 Reading Reflection

Throughout this reading, the section that talked about accounts receivables surprised me the most. There was a section that talked about how uncollected or delayed accounts receivables can seriously negatively impact a business. Businesses will strategically delay their accounts payable if the economy is going downhill because that’s the easiest way to save money. There are specific ways to avoid this situation from happening, but I never expected that accounts receivables could be so tricky.

In this chapter, there was a section that touched on the financial budgets that a start-up company has to account for. There are different types of financial statements that companies need to create. There are income statements, pro forma statements, and balance sheets. I struggled with this section because I think it is really hard for a business to come up with these financials. It’s especially difficult to come up with fro forma statements for a new business because they have no previous cash flows to base their projections off of.

If I could ask the author two questions, I would ask him if he believes that there is a way for the United States to improve their currency value. Also, I would ask him which country he believes is going to gain the most value on their currency if the United States loses it. I think it would be really interesting to get his point-of-view on things.

Personally, I didn’t disagree with anything that the author put forward in this chapter. I think that there were a lot of really interesting topics in this chapter. I learned a lot in the sections that regarded financial budgets for businesses.