1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olga_2 [115]
2 years ago
15

Describe why cash flow management is important to a business and its financial health. Use a recent financial news story as an e

xample to support your claims
Business
1 answer:
densk [106]2 years ago
6 0

The cash flow statement plays a vital role for each type of company as it shows the cash positions with respect to the liquidity because the cash should be the most liquid asset and the same would be presented in the organization's hands.

Moreover, they always try to have a sufficient cash amount so that the risk attached to the unfavorable economic situation could be eliminated. So the business wants to store a high value of cash amount and have sufficient liquidity and the same would be presented in the cash flow statement.

Learn more about cash flow here:brainly.com/question/24179665

#SPJ4

You might be interested in
A company manufactures a product using machine cells. Each cell has a design capacity of 250 units per day and an effective capa
Blababa [14]

Answer:

1.90

Explanation:

Calculation for how many cells that the company require to satisfy predicted demand

Using this formula

Numbers of cell=Projected annual demand/Annual capacity per cell

Based on the information given we were told that Annual demand is 50,000 units in which it is forecasted that within 2 years it will tripple which means that Annual demand will be calculated as:

Projected annual demand = 50,000*2 years

Projected annual demand=100,000

Let plug in the formula

Numbers of cell=100,000÷(220 units/day × 238 days/year)

Numbers of cell=100,000÷52,360

Numbers of cell=1.90

Therefore the amount of cells that the company require to satisfy predicted demand will be 1.90

6 0
3 years ago
The following information is related to Alpha Company:
yan [13]

Answer:

c. $5.1 per hour.

Explanation:

Estimated Manufacturing overhead = $249,000

Estimated direct labour hours = 50,000

Predetermined overhead Rate = Estimated Manufacturing overhead / Estimate direct labor hours

Predetermined overhead Rate = $249,000 / 50,000

Predetermined overhead Rate = $4.98

The given is inconsistent with the options given in this question. A similar question is attached with this answer. The following answer is made according to the attached question. please find that.

Estimated Manufacturing overhead = $254,000

Estimated direct labour hours = 50,000

Predetermined overhead Rate = Estimated Manufacturing overhead / Estimate direct labor hours

Predetermined overhead Rate = $254,000 / 50,000

Predetermined overhead Rate = $5.08 = $5.1 per hour

3 0
3 years ago
Bello, Inc., has a total debt ratio of .31.
lutik1710 [3]

Answer:

a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company.

b.Equity Multiplier or P/E ratio=Market value per share/Earning per share.

Explanation:

a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company. The Debt Equity ratio can be calculated using the Market value of debt or equity. It can also be calculated using the book values of debt or equity which are included in the balance sheet of the company.

b. Equity multiplier is also known as price /earning ratio. A price/earnings ratio or P/E ratio is the ratio of the market value of a share to the  annual earnings per share. For every company whose shares are traded on a  stock market, there is a P/E ratio. For private companies (companies whose shares are not traded on a stock market) a suitable P/E ratio can be selected and  used to derive a valuation for the shares.

Equity Multiplier or P/E ratio=Market value per share/Earning per share.

4 0
3 years ago
You invest $600 in security A with a beta of 1.5 and $400 in security B with a beta of 0.90. The beta of this portfolio is _____
klio [65]

Answer:

Beta= 1.26

Explanation:

<u>First, we will calculate the proportion of the portfolio of each security:</u>

Security A= 600/1,000= 0.6

Security B= 400/1,000= 0.4

<u>Now, the beta of the portfolio:</u>

Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)

Beta= (0.6*1.5) + (0.4*0.9)

Beta= 1.26

7 0
3 years ago
Identify which principle applies to each scenario by placing the appropriate label next to each scenario.
tatyana61 [14]
<span>Each scenario refers to some label. The labels are placed with a different order. We need to arrange them by checking the possibilities. Labels most probably matches with one scenario each or it can be many. If labels are less in numbers than the scenarios then it can be matched with multiple scenarios.</span>
6 0
3 years ago
Other questions:
  • Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc, which is highly profitable but has been e
    14·1 answer
  • Item 5Item 5Chet Bowes owns his own landscaping business, including all the land on which the company grows its plants, and all
    13·1 answer
  • On January 1, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest semiannu
    8·1 answer
  • Patterson Corporation began the year with retained earnings of $325,000. During the year, the company issued $500,000 of common
    8·1 answer
  • The placing of direct materials into the production process is recorded by an entry debiting:_________.A. Materials Expense.
    5·1 answer
  • The workers of Tight Footing, a tile manufacturing plant, wanted a raise. However, the management did not want to give the worke
    10·2 answers
  • Partners Ken and Macki each have a $40,000 capital balance and share income and losses in the ratio of 3:2. Cash equals $20,000,
    6·2 answers
  • Externalities Musashi plants a variety of trees, shrubs, and flowers in his yard. The landscaping beautifies the neighborhood. W
    9·1 answer
  • Why teams need negotiation skills?<br>​
    8·1 answer
  • A useful way of standardizing financial statements is to choose a ____ and then express each item relative to the _____.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!