FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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a) Define both Financing
b) For Financing Cash Flows, explain whether the “Net Cash Flow from Financing Activities” should ideally be positive or negative i.e. which one, positive or negative, is better for the business?
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- How can we show mathematically that the two approaches cash flow from operation and net income are identical?arrow_forwardMatch each of the following term with the corresponding description. Not all descriptions will be used._____ Operating activities_____ Indirect method_____ Cash equivalent_____ Investing activities_____ Direct method_____ Financing activitiesA. Measures the percent of net income that comes from high-margin products.B. Includes such events as the receipt of dividends and interest on investment assets.C. Includes assets that are very liquid and have original maturities of three months or less.D. The percent of total debt represented by a company's cash account.E. These activities include only purchases made with borrowed funds.F. Where cash flows from operating activities are calculated by converting each revenue and expense item from an accrual to a cash basis.G. This ratio multiplies net income by the average rate of interest the company receives on its investments.H. This ratio uses net income instead of operating cash flow to Analysis a company's ability to finance the cost of its…arrow_forwardWhich of the following would increase cash flow for a firm? a. A purchase of fixed assets b. Cash sales c. Purchase of markatable securities d. Credit salesarrow_forward
- If the income statement of a financial plan shows that the business will be profitable, why is there a need for a statement of cash flows?arrow_forwardFinancial managers should ultimately prioritize which of the following: A) Revenues B) Operating Cash Flows C) Profitsarrow_forwardexplain the overall objective of a financial manager, including approaches to achieve the objective. Explain how the objective relates to market value added, economic value added, and free cash flow.arrow_forward
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