Faith Integration

Cash Flows

The proper management of corporate and project cash flows requires a finance manager to make sound calculations in the determination of the right values. As a company grows, they need to continually balance financial statements for projects, determining the right mix of costs, investments, and sales to increase total revenue. This helps the company to meet quarterly earnings goals and keep shareholders happy. Even more important is to use good Christian business and finance ethics while doing so. “Keep your life free from love of money, and be content with what you have, for he has said, “I will never leave you nor forsake you”” (Hebrews 13:5, ESV). Ultimately, using a comprehensive Christian business plan to balance cash flows will be good in the eyes of God.

Corporate finance uses a discounted cash flow analysis to determine precise investment decisions. This process identifies cash flows by considering the opportunity cost of capital, present and future values, and the net present values before making the decision to invest. “Projects are financially attractive because of the cash they generate, either for distributing to shareholders or for investment in the firm” (Brealey, 2012, pg. 265). Referencing these , there are several references in the bible that outline how to make the right investments and avoid evil tendencies such as greed and dishonest finance practices in order to maintain a healthy Christian lifestyle and work ethic. “It is greed and covetousness that causes a man to endlessly pursue riches or money which are temporal and uncertain things” (Ohia, 2012, pg. 25). This guidance helps people to understand what is truly meaningful and what is not. Although balancing cash flows is a necessary part of life and business, it shouldn’t prevent people from putting God first before all Earthly things.

* Brealey, R. A., Myers, S. C., & Marcus, A. J. (2012). Fundamentals of corporate finance (7th

* ed.). New York, NY:...