3. A growing business typically has cash flow problems because profits tend to be reinvested back into the business. Describe how you would solve that. 4. What role does inventory management play in an overall business plan and describe the benefits of just in time inventory management. 5. Describe one of the methods for managing cash disbursements or cash receipts and how it impacts profitability.

3. A growing business typically has cash flow problems because profits tend to be reinvested back into the business. Describe how you would solve that. 4. What role does inventory management play in an overall business plan and describe the benefits of just in time inventory management. 5. Describe one of the methods for managing cash disbursements or cash receipts and how it impacts profitability.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter5: Income Statement: Reporting The Results Of Operating Activities

Section: Chapter Questions

Problem 6Q

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Describe the two of the asset categories in working capital. Why is working capital so important?A growing business typically has cash flow problems because profits tend to be reinvested back into the business. Describe how you would solve that.4. What role does inventory management play in an overall business plan and describe the benefits of just in time inventory management.5. Describe one of the methods for managing cash disbursements or cash receipts and how it impacts profitability.
1. Describe the two of the asset categories in working capital. 2. Why is working capital so important?3. A growing business typically has cash flow problems because profits tend to be reinvested back into the business. Describe how you would solve that.4. What role does inventory management play in an overall business plan and describe the benefits of just in time inventory management.5. Describe one of the methods for managing cash disbursements or cash receipts and how it impacts profitability.
2. Why is working capital so important?3. A growing business typically has cash flow problems because profits tend to be reinvested back into the business. Describe how you would solve that.4. What role does inventory management play in an overall business plan and describe the benefits of just in time inventory management.5. Describe one of the methods for managing cash disbursements or cash receipts and how it impacts profitability.
Clearly explain the advantages and disadvantages of cash on delivery transactions and credit sales. Relate your answers to the management of accounts receivable. b. What steps should be taken by a business to reduce/eliminate excessive inventory? Explain your answer clearly.
Is the Profit that a business makes a reliable indicator of its cash balances? What are the differences between Profit and Cash? (please, for detailed answer, thank you !)
which statement is true about the operating cycle a. the time needed from acquiring inventory from suppliers into collect cash from customers b. as longer cycle as better into the firm c. the time needed from acquiring inventory from suppliers into collect cash from customers and pay suppliers d. the time needed from acquiring inventory from suppliers into sell inventory into customers
Identify if it will Increase, Decrease or No effect. 1.What will happen to the company’s liquidity when some of its products are sold from inventory? 2.What happens to the owner’s assets when the company purchases equipment with its cash? 3.What happens to the owner’s assets when the company repays the bank that had lent?
Is the profit that a business makes a reliable indicator of its cash balances? What are thedifferences between Profit and Cash? +resource relevant to the subject if possible, thank you!
Identify if it will Increase, Decrease or No effect. 1.What happens to the owner’s assets when the company receives cash from a bank loan? 2.What happens to the owner’s equity when the company receives cash? 3.What happens to the owner’s equity when the owner invests personal cash in the business? 4.What will happen to the company’s liquidity when some of its products are sold from inventory? 5.What happens to the owner’s assets when the company purchases equipment with its cash? 6.What happens to the owner’s assets when the company repays the bank that had lent?
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?
Which of the following is not a question that can be answered with the cash flow statement?A.How much inventory does the business have on hand at the end of the accounting period after cash purchases?B.How much cash was provided or used by the business’s operating activities for the accounting period?C.How much cash was did the business spend or receive in investing activities for the accounting period?D.What was the cash movement for the accounting period?
Question: a) when business sells goods on credit, there is a decrease in cash. reqiured: please answer this question by stating whether this statement is true or false.