Answer:
1. Yes. Cash flows are able to illustrate liquidity.
2. Recommendations
a. Reducing levels of Inventory.
b. Negotiating Longer credit settlement period with suppliers.
Explanation:
One of the uses of a Cash flow Statement is its use in negotiating loans with bank and other lenders. Of interest to these parties is the liquidity of the entity.
Liquidity is the ability of an entity to honor its short-term obligations using its current assets. Liquidity is reflected in the Cash flow from Operating Activities of the Cash flow Statement.
<u>Recommendation</u>
Companies can maintain liquidity through reducing levels of inventory. Inventory ties up cash. Negotiating longer credit settlement period with suppliers can also increase liquidity.
medium of exchange, unit of account, and store of value
Answer:
<h2>Mission Statement</h2>
Explanation:
A brief description of a company's purpose is called mission statement, it tells about the company's purpose for the public and employees. It varies from company to company as because every company describes it differently.
A mission statement is important as it serves as a base line for everyone in the organisation. It serves as the basis for effective business planning. Mission statements are used in marketing as they are a company's public face. Companies also include them on their websites. A good mission statement can inspire, surprise and transform your business
Assume that Sheridan factors the receivables on a with recourse basis. The recourse obligation has a fair value of $3500. The loss to be reported is
($710000 × 0.04) + $3500 = $31900.
Answer:
The correct answer is $2,500.
Explanation:
According to the scenario, the computation of the given data are as follows:
Deposits = $200
Reserve requirement ratio = 8%
So, we can calculate the Increase in money supply by suing following formula:
Increase in money supply = Deposit ÷ Reserve requirement ratio
By putting the value, we get
= $200 ÷ 0.08
= $2,500.
