Answer:
A cash flow statement is one of the most important statements along with the income statement and balance sheet in the financial statements.
A statement of cash flow lets the organization know how much precisely on cash that came in and went out of the organization in any given period.
a) To predict future cash flow: this is a function of the cash flow statement as it enables the organization predict from past figures through a cash projection statement which modifies and accounts for anticipated changes in price, volume, interest rates, and other factors and enables the firm know how much cash is likely to flow in and out of the entity in any given future period. This enables the firm know where it stands in terms of liquidity and also helps in budgeting and making long-term plans for the organization.
b) To evaluate management decision: The cash flow statement is a great indication of a firms liquidity which is a vital indicator a the firms ability to remain in business. The cash flow statement enables investors know the exact amount of cash the has come in and out of the organization and not the profit and loss (which can be influenced through profit smoothing). The cash flow statement portrays how well cash has been spent by the company and what the cash was spent on.
c) Predict the ability to make debt payments to lenders and pay dividends to stockholders: the cash flow statement helps the firm acknowledge how much in cash i.e. how liquid the firm is which is basically its ability to make debt payments as well as any other cash payment required such as payment of dividend. The cash flow statement also lets the firm know is it would require borrowing to make any such payment.
Explanation:
Answer: 0.70; 0.30
Explanation:
Marginal propensity to consume(MPC) is the additional spending by an economic agent due to a rise in income while the marginal propensity to save is the additional saving by someone due to rise in income.
Increase in income = $3,000
Increase in spending = $2,100
Increase in savings = $3,000 - $2,100 = $900
MPC = $2,100/$3,000
= 0.70
MPS = $900/$3,000
= 0.30
Answer:
The correct answer is letter "A": True.
Explanation:
<em>Achievement of goals</em> can be considered as a factor to measure the performance of managers. If stated clearly, meaning establishing what the goal is, under what conditions it must be accomplished, and after what period, those objectives can determine if executives are doing what is necessary to manage the business properly.
The Hawthorne studies taught managers that communication with the employees is essential for higher productivity and efficiency. One theory in the human relations subject which is criticised is Maslow's hierarchy of needs.
Answer:
Gravity models are used to find location that minimizes the cost of transporting raw material from the supplier and finished goods to the markets served. This model also assumes that the transportation cost grows linearly with the quantity shipped.
Explanation:
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