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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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Crane Company issued common stock for proceeds of $389000 during 2019. The company paid dividends of $88000 and issued a long-te

ivann1987 [24]

Answer:

$284,000

Explanation:

Calculation to determine what The financing section of the statement of cash flows will report net cash inflows of

Using this formula

Net cash inflows=Common stock-Dividends-Treasury stock

Let plug in the formula

Net cash inflows= $389000-$88000 -$17000

Net cash inflows=$284,000

Therefore The financing section of the statement of cash flows will report net cash inflows of $284,000

6 0

2 years ago

Internet access to use online banking costs you $39.99 per month. A book of checks costs you $17.95 per 100. Your bank charges y

algol [13]

Answer:

$21.9275

Explanation:

The cost of online banking is $39.99

The cost of checks books is $17.95 per 100. The cost associated with 25 checks

= $17.25/100 x 25

=0.1725 x 25

=$4.3125

The cost of a stamp is 50 cents, which is $0.50

for 25 checks

=$0.50 x 25

=$12.5

The writing fee

=$0.05 x 25

=$1.25

Total cost of using checks

= $4.3125 + $12.5 +$1.25

=$18.0625

the difference between online banking and checks

= $39.99 - $18.0625

=$21.9275

6 0

3 years ago

A 4-year project has an annual operating cash flow of $53,500. At the beginning of the project, $4,450 in net working capital wa

Angelina_Jolie [31]

Answer:

E. $63,401

Explanation:

gain on disposal = salvage value of plant - book value on date of sale

= $5,790 - $4,820

= $970

tax on disposal = $970*35%

= $339.50

after tax salvage value = $5,790 - $339.50

= $5,450.50

total cash flow in 4 years

= annual operating cash flow + net working capital + after tax salvage value

= $53,500 + $4,450 + $5,450.50

= $63,401

Therefore, The Year 4 cash flow is $63,401.

3 0

2 years ago

Anna employs Mark to purchase for her a suitable site for a roller rink. Mark owns a huge site himself and sells it to Anna at f

mylen [45]

Answer:

Fiduciary

Explanation:

A fiduciary is a person that is appointed to protect the interests of his principal.

He should ensure that all transactions favor his principal maximally. It also entails full disclosure.

In this case, Mark was going to be the beneficiary of the sale. Even if the site was sold at fair market value, Mark has responsibility to fully disclose the source of the transaction to Anna.

Conflict of duty is when the fiduciary benefits from his position. This is not allowed.

8 0

3 years ago

Economic research "consistently" finds that immigration negatively impacts the average American wage. "false"

Alja [10]

Answer: The given statement is false.

Explanation:

Immigrants give a boost to the average wages of Americans by increasing the overall productivity and help in investment. Immigrant workers are more advanced in skill sets and knowledge which helps the native Americans to improve their productivity. This process has boosted the investment which in turn increased the demand for labor and increased the pressure on improving wages of labor.

4 0

3 years ago