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2 years ago

Why is looking at cash flow an important step in a good financial plan?

2 answers:

Colt1911 [192]2 years ago

8 0

Cash is the most liquid form of assets. Meaning that it can be easily traded with other resources within short a period of time.

Because of this, better cash flows usually provide financial planners with more flexibility in determining the actions that they need to take. Not only that, high amount of cash inflows indicates that there is a high volume transaction between the company and the consumers. This usually seen as favorable by investors.

stellarik [79]2 years ago

3 0

Looking at cash flow is an important step in a good financial plan because it can help you determine places where you need to scale back on spending.

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On August 1, 20Y1, Newhouse Co. received $39,110 for the rent of land for 12 months. Journalize the adjusting entry required for

Marta_Voda [28]

The adjusting entry required for unearned rent on December 31, 20Y1 is: Debit Unearned rental revenue $16,296;Credit Rental revenue $16,296.

<h3 /><h3>Unearned rent</h3>

Based on the information given the appropriate adjusting entry required for unearned rent on December 31, 20Y1 is:

31 December

Debit Unearned rental revenue $16,296

Credit Rental revenue $16,296

($39,110×5/12)

(To record unearned rent)

Inconclusion the adjusting entry required for unearned rent on December 31, 20Y1 is: Debit Unearned rental revenue $16,296;Credit Rental revenue $16,296.

Learn more about unearned rent here:brainly.com/question/4260123

3 0

2 years ago

Given the annual rate of economic growth, the "rule of 70" allows one toA) determine the accompanying rate of inflation.B) calcu

erik [133]

Answer:

B) calculate the number of years required for real GDP to double

Explanation:

The rule of 70 calculates the amount of time it takes for an investment to double.

Given the annual rate of economic growth, the rule of 70 calculates the number of years required for real GDP to double.

It is calculated as 70 / annual rate of economic growth.

I hope my answer helps you.

7 0

2 years ago

At times, an insignificant detail can be important to a significant event. <br> a. True<br> b. False

Minchanka [31]

A. True. You never know what the smallest detail may have.

5 0

2 years ago

Read 2 more answers

A sale transaction closes on April 15th. The day of closing belongs to the seller. Real estate taxes for the year, not yet bille

Rasek [7]

Answer:

$607

Explanation:

Data provided in the question:

Date of closing of sales transaction = April 15

Expected tax for the year = $2,110

Number of days in an year = 365

Now,

Per day tax = [ Expected tax for the year ] ÷ [ 365 ]

= $2,110 ÷ 365

= $5.781 per day

Time period from January 1 to April 15 in days = 105 days

Therefore,

The seller's share of the tax bill

= Per day tax × Time period from January 1 to April 15 in days

= $5.781 × 105

= $606.98 ≈ $607

6 0

2 years ago

Owens Corning has total assets of $800,000, long-term debt of $240,000, stockholders' equity of $350,000, and current liabilitie

Artyom0805 [142]

Answer:

$50,800

Explanation:

Increase in assets = Current Assets * Percentage change in sales = $800,000 * 20% = $160,000

Increase in current liabilities = Current liabilities * Percentage change in sales = $210,000 * 20% = $42,000

Increase in retaned earning = Increased sales*Profit Margin*Retention ratio = $1,000,000*120%*8%*(1-0.30) = $67,200

External financing need = Increase in Assets - Increase in liabilities - Increase in retained earning

External financing need = $160,000 - $42,000 - $67,200

External financing need = $50,800

5 0

2 years ago