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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.

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ValentinkaMS [17]

Answer: $112,000

Explanation:

Jimmy is able to withdraw the entire $112,000 tax-free.

This is because to be able to Withdraw tax-free, one must have deposited money in the IRA for a minimum of 5 years and the person must be at least 59.5 years of age.

Those 2 criteria are met by Jimmy who deposited for 18 years and is now aged 65.

4 0
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daser333 [38]
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5 0
3 years ago
Science explanation avout mesurement
maw [93]

Answer:

what is the importance of trade international trade?

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Explanation:

4 0
3 years ago
Saeid, a muslim, alleges that his supervisor made numerous remarks belittling his muslim religion, arabs generally, and him spec
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Some investment projects require that a company increase its working capital. Under the net present value method, the investment
zzz [600]

Answer:

Both an initial cash outflow and future cash inflow

Explanation:

Net value cash flow is the different cash flows that happens at different times. It takes into account the initial cash outflow or capital investment and the amount that it would be getting in the future that is the future cash inflow.

The net present value gives us a difference between cash inflows and cash outflows in their present values over a period of time.

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