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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.

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Veseljchak [2.6K]
The answer is B I believe 
3 0
3 years ago
Is it true or false that once all franchis is paid for all profit goes to the entrepreneur
MA_775_DIABLO [31]

This statement is false.

When an entrepreneur buys into a franchise they will always have franchise fees, even after their intial investment is paid for. The additional fees that they always pay include charges for things like marketing and royalties. These fees are normally based on a percentage of a business’s sales.

7 0
3 years ago
Slapshot Company makes ice hockey sticks and sold 1,890 sticks during the month of June at a total cost of $378,000. Each stick
Grace [21]

Answer:

<u>Slapshot Company</u>

<u>Income statement for the month of June</u>

Sales ( 1,890 x $360)                                   $680,400

Less Costs of Sales                                    ($378,000)

Gross Profit                                                  $302,400

Selling Costs :

Commissions                           $68,040

Other Selling Expense            $64,700

Administrative Expense          $53,800    ($186,540)

Net Income                                                   $115,860

Explanation:

The Income statement shows the <em>Profit</em> earned during the reporting period. This is determined as Gross Profit (Sales - Cost of Sales) minus the Operating Expenses.

6 0
3 years ago
Assume that consumers' incomes and the number of sellers in the market for good A (a normal good) both decrease. Based upon this
Vadim26 [7]

Answer:

Quantity will Increase

Explanation:

As we know that when market is in equilibrium so the demand curve should be intersected the supply curve. At the time when there is an increase in suppliers so supply curve shift rightward due to which the consumer income would increase and this result in more demand. So the demand could be shift in rightward

So here the price should be the same but the quantity is increased

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3 years ago
IMA GOIN BROKE FROM THESE GIVAWAYS BUT HERES MORE POINTS
KIM [24]

Answer:

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Explanation:

5 0
3 years ago
Read 2 more answers
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