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r-ruslan [8.4K]
3 years ago
10

Explain whether the Statement of Cash Flows is able to illustrate the ‘liquidity’ of an entity to its users and provide ONE reco

mmendation how companies can maintain liquidity during this pandemic.
Business
1 answer:
Yuliya22 [10]3 years ago
6 0

Answer:

A cash flow is an important part of an organisation. it helps in understanding the cash flows from investing, operating and financial activities.

A cash flow statement helps in evaluating the liquidity of a company.

During the current Pandemic, maintaining liquidity is very important.

some business functions freezes. such firm will experience cash operating cots. the firm should have enough cash to maintain the business in moving forward.

Explanation:

Solution

A cash flow statement is a vital parts or components provided by an organisation.i t helps in interpreting the cash flows from investing, operating and financial activities or functions.

An organisation income statement is made ready based on the accrual basis and so it does help or aid in the understanding the movement of cash during.

A cash flow statement helps in evaluating the liquidity of a company.

Operating activities of cash flows is computed or estimated by putting Non cash expense to net income and then deducting current liabilities and assets.

Cash flow from operating activities are necessary to the firm because it helps  in providing  cash to invest assets and payback of debt.

Maintaining liquidity during the present pandemic has become very necessary.

Since business functions  freezes, the firm will experience cash operating cots. hence the firm should have sufficient cash to maintain the business running.

The firm can also take a loo at their current assets to see if it can be converted to cash on quickly basis.

You might be interested in
cash transactions involving the purchase and sale of long-term assets and current investments are classified on the statement of
ivanzaharov [21]

Answer: Investing Activities

Explanation: The investing activities lists all of the purchases and sales of long-term fixed assets, such as equipment, building, land, and the purchase of shares.

Hope this helps.

7 0
2 years ago
Currently in​ Economica, the frictional rate of unemployment is 2.0​%, the structural rate of unemployment is 2.0​%, and the cyc
ollegr [7]

Answer:

7,5%

Explanation:

natural rate of unemployment is generally comprised of 3 unemployment types: structural rate of unemployment, cyclical rate of unemployment and frictional unemployment. This state exists even in a healthy environment commercially viable as workers will always seek for new jobs. At the time they leave to seek for new jobs, that period relates to natural rate of unemployment of the country or state.

so we add, frictional rate plus structural rate plus cyclical rate to get the figure for natural rate of unemployment.

6 0
3 years ago
Lowe's is the second-largest home improvement retailer in the world, with 2,002 stores. During its fiscal year ended in February
34kurt

The financial statement effects template records Lowe's purchases for the fiscal year ended February 28, 2019 as follows:

Transaction        Assets                       =   Liabilities   +   Equity

Purchases          $0       +   $49,569    =   $49,569     +    $0

                          Inventory                         Accounts Payable

The accounts equally affected by the purchases on account are the Inventory and the Accounts Payable.

Data Analysis:

Merchandise Inventory $49,569 Accounts Payable $49,569

Thus, with the purchases of merchandise during the fiscal year at a cost of $49,569, the Assets (inventory) and Liabilities (accounts payable) are increased by the same amount.

Related question on the financial statement effects at brainly.com/question/16362041

4 0
3 years ago
The form of business that limits the liability of individuals for the risks involved in business activities is known as _____.
m_a_m_a [10]

Answer:

The correct answer to the following question will be Option A (Corporation).

Explanation:

A Corporation seems to be a separate legal entity and is different from its proprietors. Corporations possess most of individual responsibilities and rights: they can sign contracts, lend and borrow the money, sue and prosecute, hire workers, own properties, and paying taxes. Some call him a "legal person".

A company form that declares the enterprise as a distinct, corporate entity governed by people known as the management board. Perhaps the most beneficial way to begin an enterprise is a corporate structure, as the organization operates as a distinct entity.

Therefore, Option A is the right answer.

3 0
3 years ago
Harry, Hermione, and Ron formed an S corporation called Bumblebore. Harry and Hermione both contributed cash of $30,000 to get t
tatyana61 [14]

Answer:

Harry and Hermione $30,000

Ron’s $19,300

Explanation:

Calculation to determine What tax bases will each of the three have in his or her stock of Bumblebore

Based on the information given we were told that both Harry and Hermione contributed cash of the amount of $30,000 to get things started which means that Harry and Hermione TAX BASES will be $30,000

Calculation for Ron’s Tax bases

Using this formula

Ron’s Tax bases=Basis of the property contributed-Mortgage

Let plug in the formula

Ron’s Tax bases=$60,000-$40,700

Ron’s Tax bases=$19,300

Therefore Harry and Hermione tax based will be $30,000 and Ron’s Tax bases will be $19,300

7 0
2 years ago
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