PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Chapter 29, Problem 3PS
Summary Introduction
To determine: The impact of each transaction on cash, net working capital, and the current ratio.
Net working capital is the difference between the current asset and current liability of a firm.
Current ratio is the ratio which shows the firm’s ability to settle the short term debt or obligations due within one year.
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Students have asked these similar questions
Assume that a company repays a $300,000 loan from its bank and then later in the same year borrows $500,000. What amount(s) would appear on the statement of cash flows?
> ABC Inc. is preparing its cash flow statement under the
direct method and has provided this information:
Net credit sales $5,000,000
Accounts receivable, end of the year 1,500,000
Accounts receivable, beginning of the year 2,500,000
Purchases (on account) 4,000,000
Trade payable, end of the year 1,900,000
Trade payable, beginning of the year 2,000,000
Operating expenses 3,000,000
Accrued expenses, beginning of the year 500,000
Accrued expenses, end of the year 400,000
Depreciation on property, plant, and equipment
600,000
> Required: Prepare the operating activities section of cash
flow statement under the direct method.
Which of the following is an example of
an operating cash flow? *
Dividends paid
Proceeds from sale of equipment
Payment of wages
Borrowing of P100,000 from a bank
Chapter 29 Solutions
PRIN.OF CORPORATE FINANCE
Ch. 29 - Sources and uses of cash State whether each of the...Ch. 29 - Sources and uses of cash Table 29. 11 shows...Ch. 29 - Prob. 3PSCh. 29 - Sources and uses of cash and working capital...Ch. 29 - Prob. 5PSCh. 29 - Prob. 6PSCh. 29 - Cash cycle A firm is considering several policy...Ch. 29 - Collections on receivables Here is a forecast of...Ch. 29 - Collections on receivables If a firm pays its...Ch. 29 - Forecasts of payables Dynamic Futon forecasts the...
Ch. 29 - Cash budget Table 29.13 lists data from the budget...Ch. 29 - Short-term financial plans a. Paymore places...Ch. 29 - Short-term financial plans Which items in Table...Ch. 29 - Short-term financial plans Work out a short-term...Ch. 29 - Prob. 16PSCh. 29 - Prob. 17PSCh. 29 - Long-term financial plans Corporate financial...Ch. 29 - Prob. 19PSCh. 29 - Prob. 20PSCh. 29 - Long-term financial plans Construct a new model...Ch. 29 - Long-term financial plans a. Use the Dynamic...Ch. 29 - Long-term financial plans Table 29.15 summarizes...Ch. 29 - Long-term financial plans Abbreviated financial...Ch. 29 - Prob. 25PSCh. 29 - Forecast growth rate What is the maximum possible...Ch. 29 - Forecast growth rate a. What is the internal...Ch. 29 - Forecast growth rate Bio-Plasma Corp. is growing...Ch. 29 - Long-term plans Table 29.18 shows the 2019...
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