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
Dafna11 [192]
3 years ago
14

Given your understanding of cash flow, financial statements, ratio analysis and time value of money, provide an example of why t

he integration of these concepts would be important. Do not quote the text, but think through these tools and provide an example for the others in the class as to the importance and value of these ideas when they are effectively integrated.
Business
1 answer:
Alla [95]3 years ago
5 0

Answer:

The best example I can think of that would integrate all of these concepts is when a business is looking to finance some sort of project and they are seeking financing either through the issuance of bonds or a loan from a bank. Some of the concepts would be important to both parties, while others would be more important to one than the other.

Cash Flow

This would be important to both parties. The business, to make sure they have enough cash flow to pay for the financing. And the financiers, for the same reason.

Ratio Analysis

This would be important to both parties for the same reason as above. Especially the "current ratio" (current assets / current liabilities) and the "working capital" ratio (current assets - current liabilities).

Financial Statements

This would be of most importance to the financiers. They would want to see the total picture of a company's financial strength.

Time Value of Money

This would be of most importance to the company itself. They would want to know if the project was worth the total amount they would be paying on the bonds or the loan

You might be interested in
For businesses that gross in excess of $10 million per year, pro forma amounts are usually ________. rounded to the nearest ten
KatRina [158]

Answer:

rounded to the nearest ten thousand dollars

Explanation:

The term pro forma financial statements refers to a type of financial statement which estimates future financial results. It doesn't follow the GAAP, instead it is designed to focus on specific figures about a company's expected earnings. Although pro forma financials are only expected financial statements, it is still illegal to mislead investors using them.

5 0
3 years ago
Which employment scenario would not affect the economy adversely?
spayn [35]

i not sure but cyclical makes more sense.

7 0
3 years ago
Read 2 more answers
The contestable market model of oligopoly bases pricing and output decisions on:
taurus [48]
<span>The contestable market model of oligopoly bases pricing and output decisions on the threat of new entrants into the market. The oligopoly market form is where the market or industry is run by a small amount of sellers that can influence the price and other market factors.</span>
8 0
3 years ago
Which of the following is usually the largest type of rental car
densk [106]
I would think it could be a 4 ×4
5 0
3 years ago
Which strategy are you using when you only read the title section headings and captions?
Andru [333]

Answer:

Skimming

Explanation:

7 0
3 years ago
Read 2 more answers
Other questions:
  • Peanuts are an input in the production of peanut butter. If a decrease in the supply of peanuts increases the price of peanuts,
    11·2 answers
  • Two 20-year corporate bonds are issued at par, with stated interest rates of 10%. One issue is puttable at par in 5 years, while
    7·1 answer
  • Problem 7-17 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] Smoky Mountain Corporation ma
    9·1 answer
  • Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attem
    14·1 answer
  • During the implementation phase of the systems development life cycle (SDLC), in _____, as each module of a new system is conver
    13·1 answer
  • If a cost estimate indicates that a residential design is significantly over budget, what changes would you consider to reduce t
    9·1 answer
  • What are some events that have significantly influenced and changed the sport industry? Please explain.
    11·1 answer
  • Suppose that you take $150 in currency out of your pocket and deposit it in your checking account. If the required reserve ratio
    11·1 answer
  • Ranger Inc. would like to issue new 20-year bonds. Initially, the plan was to make the bonds non-callable. If the bonds were mad
    14·1 answer
  • norma inc. uses the perpetual inventory system. when the company records a sale, it should make entries to:
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!