Is it possible for a firm’s cash cycle to be longer than its operating cycle? Explain why or why not.

Q: What kind of change is represented in a firm by the incremental, cash flows?

A: Incremental cash flow refers to change in the cash flow of the company with respect to a investment…

Q: Explain how each of the following factors would probably affect a firm’starget cash balance if all…

A: Treasury bills are short term obligations of the government with the maturity of less than one year.…

Q: Why is an analysis of the company’s cash balance important?

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: What happens to cash if the value of other current assets rises? Is it possible that current assets,…

A: Here is the answer :

Q: Which one of the following statements is correct?  A.  If a firm decreases its inventory…

A: Inventory period is based on how much inventory on average you keep on hand and receivable period is…

Q: How can the components of working capital affect the cash position of a firm?

A: The question is based on the concept of working capital and effect of change in working capital on…

Q: Liquidity is the ability of a company to meet its needs for cash in the short and long term. True O…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: What methods can be used to delay a firm’s cash outflows?

A: Cash Outflows: It is the cash that go away from a business. Such cash can be used for paying staff…

Q: How can an analyst approach forecasting a company’s future net income and cash fl ow?

A: Analyst always tries to use a look-ahead basis while projecting the net income and cash flow. The…

Q: What is the payback period for the machine, assuming all cash flows occur evenly.

A: Payback period is the number of years it would take for the company to recover its capital invested.…

Q: Why is cash conversion cycle useful in financial analysis of a firm? (Short answer and keyboard…

A: Cash flow is defined as the net amount of cash and cash equivalents carried into and out of a…

Q: A higher average daily disbursement float than average daily collection float is more desirable for…

A: Account payables are the payments to be done to the supplier and vendors and they provide credits…

Q: Is it possible for a company to show positive cash flows and still be in grave trouble?

A: Positive Cashflows indicates that the company has increased its cash balance from its previous year.…

Q: How do free cash flows and the weighted averagecost of capital interact to determine a firm’s value?

A: Free cash flows to the firm (FCFF) are the cash flows that a firm expects to earn from its…

Q: 1. Can a firm with positive net income run cash? Explain.

A: Cash is very important in the business and there is need of cash in business and no business can…

Q: Describe the cash flow cycle in a typical manufacturing firm?

A: The cash conversion cycle mirrors the measure of days a business needs to convert resources to cash…

Q: Which of the following statements is false? A) The main components of net working capital are…

A: Working Capital = Current Assets- Current Liabilities

Q: What methods can be used to speed up a firm’s cash inflows?

A: Cash inflows:Cash inflow can be defined as cash or money attained by an institution, firm or company…

Q: What is float? How do firms use float to increase cash managementefficiency?

A: Financially, the float consists of cash that is shortly measured twice as long as a deposit is…

Q: Describe what would happen to a company if it ran out of cash. Explain the importance of good…

A: Funds are the basic necessity to run the business. Funds are like blood for the business. No…

Q: What does a firm's statement of cash flows report?

A:

Q: You hear a saying "In order to find out how much cash a company is generating, you have to look at…

A: Net profit of the company means how much profits or income has been earned in a particular period of…

Q: How does a firm’s ability to borrow affect its optimal holdings of cash and securities?

A: In a regular course of business, every business entity enjoys benefit of credit from each other…

Q: Why are the cash flows so difficult to estimate accurately?

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Would the move to a JIT system have a one-time or recurring impact on operating cash flow?

A: JIT inventory system: JIT system is a method adopted by manufacturers with an objective of…

Q: What are some actions a firm can take to shorten its cash conversion cycle?

A: The cash conversion cycle is the time period between the out flow of cash for purchasing raw…

Q: Can management of a company such as Samsung use the cash conversion cycle as a useful measure of…

A:

Q: What are some tools that companies have to manage their (net operating) working capital?  Provide…

A: Net operating WC = CA - CL (current assets - current liabilities) The components of working capital…

Q: What might RR do to reduce its target cash balance without harming operations?

A: Target cash balance can be defined as the ideal cash level that a company seeks to hold in reserve…

Q: What factors determine the need for cash in a firm's operation?

A: It would be desirable on the part of the management to provide for sufficiently large amount of cash…

Q: What is the relationship between the predictability fo a firm's cash inflows and its required level…

A: Working capital, otherwise called net working capital (NWC), is the distinction between an…

Q: Can a firm have income without also having a positive cash flow? Explain.

A: Cash Flows are the inflows & outflows of cash in the business to meet the day to day activities.…

Q: f the following is false? a. Baumol model helps firm to find out their desirable level of cash…

A: Account payable are the amount of money to be given to the suppliers and creditors who provides…