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r-ruslan [8.4K]
4 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]4 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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Wren pork company uses the value basis of allocating joint costs in its production of pork products. relevant information for th
Volgvan

Answer: $8600

Explanation:

Joint cost allocation:

Product :

Loin chops

Pounds - 3000

Price per pound - $5

ground

Pounds - 10,000

Price per pound - 2.00

ribs

Pounds - 4,000

Price per pound - 4.75

bacon

Pounds - 6,000

Price per pound - 3.50

total joint cost - $43000

Sales cost per product :

Loin chops - 3000 × 5 = $15,000

Ground = 10000 × $2 = $20,000

Ribs - 4000 × $4.75 = $19,000

Bacon - 6000 × $3.50 = $21,000

Loin cost allocation is given by :

Total joint cost × (sales value of Loin chops ÷ Total sales value of all products)

$43,000 × ($15,000 ÷ $(15,000 + 20,000 + 19,000 + 21,000))

$43,000 × ( $15000 ÷ $75000)

$43,000 × 0.2 = $8600

3 0
4 years ago
Risk management refers to the practice of identifying potential risks in advance, analyzing them and taking precautionary steps
allsm [11]

Answer:

True

Explanation:

Risk management is the practice of identification of number of risks that the organization faces and then assessing each of them. After assessment of the risks, the organization try to find ways to eliminate or reduce each single risk so that the business operations do not get affected. The precautionary measures can be simply avoid the risk, face the risk, share the risk (Insurance) and reduce the risk to acceptable level.

8 0
3 years ago
15. The Eller Mutual Fund had a Net Asset Value (NAV) per share of $17.50 on January 1, 2019. On December 31, 2019 the fund’s NA
klio [65]

Answer:

The rate of return is 21.26%

Explanation:

Before calculating the return in percentage terms, it would be more appropriate to start with computing the return on the mutual fund in dollars ' terms.

Return in dollars terms;

Net Asset Value on 31 December 2019              $19.47

less

Net Asset Value on 1 January 2019                    ($17.50)

return  on NAV                                                      $1.97

Add:

Income distributions                                             $0.75

Capital gains distributions                                     $1.00

Total return on mutual fund                                   $3.72

Rate of return=total return mutual fund/Opening net asset value

rate of return =$3.72/$17.50

                       =21.26%

7 0
3 years ago
PLEASE HELP!! 20 POINTS
goldfiish [28.3K]

Answer:

Members

Explanation:

7 0
3 years ago
The labor-force participation rate tells us the fraction of the population that a. has chosen to participate in the labor market
Klio2033 [76]

Answer:

a. has chosen to participate in the labor market.

Explanation:

The formula to compute the labor-force participation rate is shown below:

Labor- force participation rate = Labor force ÷ Population of working age

By dividing the labor force with the  Population of working age so that the labor force participation rate could come

Therefore, the option a is correct as it defines the participated in the labor market

8 0
3 years ago
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