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2 years ago

An increase in ________ will increase operating cash flow for a profitable

Business

1 answer:

enot [183]2 years ago

3 0

Answer:

Revenue / Sales

Explanation:

Operating cash flow is net of the cash received from the revenue and paid for the expenses during the year. Increase in revenue will lead to an increase in operating cash flow of a profitable business. Operating cash flow is net of the cash received from the revenue and paid for the expenses during the year. on the other hand the increase in Expenses will result in the decrease in operating cash flows.

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Which of the following BEST describes a company's proper liquidity management?

Naddika [18.5K]

Answer:

A. Liquidity management is a balancing act, managers try to find liquidity levels that are neither too high not too low.

Explanation:

Maintaining proper liquidity is an important financial objective of management. Proper liquidity management demands that an entity should be able to meet his short term financial obligation and making sure that liquid assets of the entity are not idle. In order to achieve this, the best way to go is to maintain a level that is neither too high and not too low. Not too high means the entity is not holding too much cash or liquid assets than it currently need to meet its short term financial obligation.

For example, not keeping too much cash in current account but investing them in interest-earning investment assets.

Not too low means the cash or liquid assets held by an entity should not less than the amount needed to meet its short term financial obligation. For example, making sure that the entity has enough cash or readily convertible liquid assets that can be used to pay vendors, rent, interest and meet other short term financial obligation.

Option B is false because keeping too much does not help to maximize short term earnings which is a feature of proper liquidity management. Option C is wrong because there is no guideline to support that deferring coupon payment won`t attract payment and this does not connote proper liquidity management.

Option D is obviously false and does not describe proper liquidity management.

4 0

2 years ago

Read 2 more answers

A company had net sales of $660,000, total sales of $810,000, and an average accounts receivable of $78,000. Its accounts receiv

qwelly [4]

About 78,000 until the turn over

5 0

2 years ago

"identify each of the principles underlying aicpa auditing standards in the first column by selecting the letters corresponding

adoni [48]

Explanation:

Ray, the owner of a small corporation, ordered CPA Holmes to perform a record audit. Ray told Holmes that a loan application should include a prompt analysis of the audited financial statements of a bank. Holmes acknowledged the agreement unanimously and decided that an auditor's report should be given within 3 weeks. If the loan was granted, Ray accepted to pay Holmes a fixed fee plus a bonus.

Two accountant graduates were employed by Holmes to perform the audit and spent several hours saying exactly what to do. Holmes told the students to concentrate instead on providing accurate statistical facts in the documents and summing up a date that confirms Ray's financial statements that do not include footnotes, instead of testing the controls.

Holmes checked the documents and produced a report of the auditor without qualification. The article applies neither to the GAAPs nor to their consistent application.

5 0

3 years ago

Use the following information to calculate for the year ended December 31, 2018

Anastasy [175]

Answer:

a. $13,000

b. $17,000

c. $27,000

Explanation:

a= Net income (loss) = Service revenue - Other operating expenses

Net income (loss) = $25,000 - $12,000

Net income (loss) = $13,000

b. Ending retained earnings = Beginning retained earnings + Net income - Dividends

Ending retained earnings = $5,000 + $13,000 - $1,000

Ending retained earnings = $17,000

c. Total assets = Cash + Accounts receivable + Supplies + Equipment

Total assets = $15,000 + $3,000 + $3,000 + $6,000

Total assets = $27,000

8 0

3 years ago

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the fi

Daniel [21]

Answer:

Quick Furniture Company

The Sanding Department

Production Report

For the month of March 2017:

Materials Conversion Total

Manufacturing costs $35,948 $56,240 $92,188

Cost per equivalent unit:

Manufacturing costs $35,948 $56,240

Equivalent units 9,510 7,110

Cost per equivalent unit $3.78 $7.91

Cost assigned to:

Units transferred out $24,608 $51,494 $76,102

Ending Work in Process $11,340 $4,746 16,086

Total costs assigned $35,948 $56,240 $92,188

Explanation:

a) Data and Calculations:

Materials Conversion

Units started 9,510

Units completed 6,510 6,510 6,510

Ending WIP 3,000 3,000 600

Equivalent units 9,510 7,110

Production Cost Report:

Materials Conversion Total

Manufacturing costs $35,948 $56,240 $92,188

Cost per equivalent unit:

Manufacturing costs $35,948 $56,240

Equivalent units 9,510 7,110

Cost per equivalent unit $3.78 $7.91

Cost assigned to:

Units transferred out $24,608 $51,494 $76,102

($3.78 * 6,510) ($7.91 * 6,510)

Ending Work in Process $11,340 $4,746 16,086

($3.78 * 3,000) ($7.91 * 600)

Total costs assigned $35,948 $56,240 $92,188

6 0

3 years ago