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
Anni [7]
3 years ago
15

Changes in net operating working capital should not be reflected in a capital budgeting cash flow analysis because capital budge

ting relates to fixed assets, not working capital. T/F
Business
1 answer:
Ede4ka [16]3 years ago
6 0

Answer:

The correct answer is False.

Explanation:

Net working capital, or "Working Capital" is simply the difference between current or current assets and current or short-term liabilities of a company.

Cash flow, on the other hand, is the net amount of cash and its equivalents that is transferred inside and outside the company and that may originate in operational, investment or financing activities.

Cash flow will have an operational origin, when there is a net decrease in working capital. In this situation there will be a net cash release that the company can use freely to honor debts, reinvest in operations, pay dividends, cover expenses or provide funds for future investments.

A negative cash flow, from the point of view of operations, implies that the company has increased its cash demands to finance sales on credit or inventory. That is, it has increased its investment in working capital. Situation that will require an analysis that allows a better way to manage capital.

You might be interested in
We believe in creating loyal customers by providing a superior experience at a great value. We are committed to direct relations
Likurg_2 [28]

Answer:

b) mission statement

Explanation:

A mission statement is a formal description that captures all what a company is set out to do in achieving their vision. It is a brief summary of a company’s philosophy, goals and objectives.

A mission statement is what gives a clear direction to a business, as the purpose of a business is well clarified. A mission statement which answers the basic question of “Why does your business exist” helps in increasing employee engagement as well as ensuring the vision of the company is actualized.

The statement of Dell as highlighted in the question above is part of Dell’s mission statement, as it tells why the business exist.

3 0
3 years ago
g Marginal revenue product (MRP) of labor refers to the: A. amount by which a firm's total resource cost increases when it emplo
UNO [17]

Answer:

c

Explanation:

Marginal revenue product (MRP) is the change in total revenue when one more unit of a resource is employed.

For example :

Units of labour    Revenue

1                             100

2                             200

The MRP of employing 2 units of labour = (200 - 100) / (2 -1) = 100                          

7 0
2 years ago
What happens if an offeree alters and then signs any part of an offer?
bekas [8.4K]
That mean they are going through something
3 0
3 years ago
What is the difference between a savings account and a certificate of deposit?
Alecsey [184]
A savings account you can redraw from, while a certificate of deposite has to be left alone for a certain while, and it ussually gains more interest.
6 0
3 years ago
During _____ processes for a new project, the organization recognizes that a new project exists, and completes a project charter
never [62]

Answer: (D) Initiating

Explanation:

The Initiating processes is one of the phase in the project management life cycle that is necessary for defining the existing project's main objective, success criteria and also the outcome.

The initiating processes helps in providing the effective information or data that is necessary for the developing the project. It is also refers top the process for obtaining the authorization for the given project.    

 According to the given question, the initiating processes recognizing all the existing projects and also complete all the project charter as part of recognition process.  

 Therefore, Option (D) is correct answer.

5 0
3 years ago
Other questions:
  • Permian Underground Machines & Pipes Co. (PUMP) is in the oil and gas equipment and services industry. It is considering a n
    15·1 answer
  • True or false?
    12·2 answers
  • Assuming year 2 cost of goods sold is $730,000, what are the company's average days to sell inventory
    11·1 answer
  • Balance sheet accounts Group of answer choices 1. are called real accounts 2. have zero balances after the closing entries have
    12·1 answer
  • Employees at Between the Rounds believe that the company is fair to all employees, regardless of their age, gender, race, ethnic
    14·1 answer
  • A computer game that can be purchased online and played right away has good
    5·1 answer
  • Sales on account for the first two months of the current year are budgeted as follows:
    10·1 answer
  • At the beginning of 2021, Artichoke Academy reported a balance in common stock of $154,000 and a balance in retained earnings of
    11·1 answer
  • Don wanted to incorporate his business and liked the attributes of an S-corporation, however, he did not feel the eligibility re
    14·1 answer
  • Selections, a general partnership, operates a gift shop. Selections has five partners. Tony has a one-third interest in the part
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!