Your managers showed you the income statement for your company. The income statement shows a net income of 5.4%, yet your manager says the company will need to borrow money to meet their financial obligations. How is this possible? Please address the following issues in your discussion this week: How can a company make a profit and still be short of cash? In accrual accounting, we record sales when they occur, not when the cash is collected. How does this affect cash flow? How does the purchase of fixed assets or additional inventory adversely affect cash flow?

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I need help with this practice problem.

(i) Explain what is meant when a business activity has high operating gearing.(ii) What are the implications for a business with high operating gearing?

Blecker Corp. made cash sales to customers. What effect does this transaction have on theaccounting equation?a. Liabilities increase and stockholders’ equity increases.b. There is no effect on the accounting equation as one asset account increases whileanother asset account decreases.c. Assets increase and liabilities increase.d. Assets increase and stockholders’ equity increases.

In the Excel, or spreadsheet, approach to recording financial transactions, which of the following is true? 1. Cash paid to creditors is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings column. II. Expired insurance coverage on factory equipment is recorded as a decrease in the Prepaid Insurance column and as a decrease in the Retained Earnings column. III. An advertising expense paid in cash is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings column. Multiple Choice Only statement I is true. Only statement is true. Only statement is true. None of the statements are true.

expenses. 3. Accounts often need to be adjusted because a. there are never enough accounts to record all the transactions. b. many transactions affect more than one time period. c. there are always errors made in recording transactions. d. management can't decide what they want to report. 4. The most important information needed to determine if companies can pay their current obligations is the a. net income for this year. b. projected net income for next year. C. relationship between current assets and current liabilities. d. relationship between short-term and long-term liabilities. 5. The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit a. Accounts Payable. b. Purchase Returns and Allowances. C. Sales. d. Merchandise Inventory. EFocus

The 2018 income statement and the 2018 comparative balance sheet of GhentRiver Camp, Inc., have just been distributed at a meeting of the camp’s board of directors.The directors raise a fundamental question: Why is the cash balance so low? This question isespecially troublesome since 2018 showed record profits. As the controller of the company, youmust answer the question.   Requirements1. Prepare a statement of cash flows for 2018 in the format that best shows the relationshipbetween net income and operating cash flow. The company sold no plant assets or longterm investments and issued no notes payable during 2018. There were no noncash investing and financing transactions during the year. Show all amounts in thousands.2. Answer the board members’ question: Why is the cash balance so low? Point out the twolargest cash payments during 2018. (Challenge)3. Considering net income and the company’s cash flows during 2018, was it a good year or abad year? Give your reasons.

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What is the amount of Cash received from customers?  How much is the net income (loss) of the year 6?  What is the amount of cash generated (used) by accounts receivables?  What is amount of cash generated (used) by Operations in Year 6?  What is ending balance of Cash at the end of Year 6?  What is ending balance of Accounts Receivables at the end of Year 6?  What is ending balance of Retained Earnings at the end of Year 6?