1、 What is the relationship between registered capital and cash flow?
There is no relationship between the two, but they are also an indispensable part. At the same time, the registered capital "Cash received from investment absorption". The registered capital is the amount of capital contribution subscribed or the total amount of share capital subscribed by all shareholders or promoters as stipulated in the articles of association of a company type enterprise, and is registered with the company registration authority according to law. The registered capital of a company is the amount of capital registered by the company's registration authority, also known as legal capital. The registered capital reflects the property rights of the company's legal person. All the capital invested by shareholders shall not be withdrawn, and the company shall exercise the property rights.
2、 The position of cash flow management in enterprises
1. Strengthening cash flow management is the basic requirement for the survival of enterprises. Each enterprise has its own different development stages, and its cash flow characteristics are also different. Therefore, according to the characteristics of its operation in different stages, taking corresponding effective cash flow management measures can ensure the survival and normal operation of the enterprise. Otherwise, it will have a fatal impact on the survival of enterprises. For example, in 1975, W T. Grant declared bankruptcy. The year before its bankruptcy, its net operating profit was nearly 10 million dollars, its operating activities provided more than 20 million yuan of operating capital, and its bank loans amounted to 600 million dollars. In 1973, the company's stock price was still sold at 20 times its earnings. The reason for the bankruptcy of the enterprise is that the net cash flow of the company as early as five years before the bankruptcy has been negative. Although there are high profits, the company's cash cannot pay huge productive expenses and debt expenses, which finally leads to "growth bankruptcy".
2. Strengthening cash flow management can ensure the healthy and stable development of enterprises. In the past, the indicators used to evaluate the development ability of enterprises, such as profit and income. However, because the measurement method of profit can be manipulated artificially, and in addition, some enterprises will reduce the product development and research expenses in order to increase profits, the reduction of these expenses will only affect the long-term interests of enterprises. The cash flow makes up for these deficiencies. Free cash flow can reflect the overall payment capacity of the enterprise, and equity cash flow can truly reflect the actual payment capacity of the enterprise. The two indicators comprehensively reflect the enterprise's own ability to pay and the ability to give returns to the enterprise's stakeholders, which is a comprehensive reflection of the enterprise's development potential. Therefore, China Unicom made it clear at its 2003 planning work meeting that free cash flow of enterprises was an important indicator for assessing the development of its branches.
3. Strengthening cash flow management can effectively improve the competitiveness of enterprises. With the increasingly fierce market competition, enterprises are required to constantly seek innovation and speed in production and management, and adjust the production process of products in time to meet the ever-changing requirements of consumers. In this competitive context, cash liquidity is the most important factor that determines the speed of enterprise operation. And through the management of cash flow, enterprises can maintain good cash liquidity, improve the efficiency of cash use, so that the funds of enterprises can be converted into productivity in a timely manner, and improve the competitiveness of enterprises.
To sum up, the registered capital and cash flow reflect different natures at different stages. When the company operates, it will be handled according to the non event stage. With the registered capital, there will be the existence of the company, and there will be cash flow at the same time. Therefore, the company's affairs need to be handled by the Company Law.
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