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Both
| A) | TRUE |
| B) | FALSE |
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- we know that depreciation is linked to the net cash flows of the company's investments. In fact, any increase in depreciation amounts leads to an increase in net cash flows because: a. reduces investment-related taxesb. increases investment-related taxesc. increases the tax rate on investment gainsd. reduces the discount rate of investmentsDescribe how changes in non-cash items, such as depreciation and deferred taxes, can impact a company's cash flow statement. How can analysts adjust for these non-cash items when using the cash flow statement for financial analysis?In a statement of cash flows, if used equipment is sold at a gain, the amount shown as a cash inflow from investing activities equals the carrying amount of the equipment: Plus the gain. Plus the gain and less the amount of tax attributable to the gain. Plus both the gain and the amount of tax attributable to the gain. With no addition or subtraction.
- How is it the operating Cash flow is positive if Earnings Before Interest and Tax is a negative figure if the formula is EBIT+Depreciation -Tax. kindly explain that calculation for operating Cash FlowThe following are goals‘andobjectives in working-capitalmanagement. Which is the LEASTACCURATE? a. Payables management includes the analysis of the business's use of trade payables and short-term non-trade payables but not long-term non-trade payables.b. Availability of money marketable securities support the cash management function by providing a return on excess cash.c. Receivable management involves setting the credit term but not the implementation of how receivables are collected.d. Inventory management allows the entity to determine the best level of this asset while balancing the risk of over- and under- stocking......is the after tax cash flow generated by a business minus the cost of the capital it has deployed to generate that cash flow a. Net Present Value (NPV) a. Ob Economic value added (EVA) Oc. Internal Rate of Return (IRR) d. Discounted Cash Flow
- Which is not a component of the firm’s cash flow from assets? operating cash flow additions to net working capital net new borrowings none of the aboveHow can a Company Show Positive Net Income but go Bankrupt? What does Working Capital Mean? Why do Capital Expenditures Increase Assets When other Cash Outflows don't and Instead Create Expenses? Explain a Cash Flow Statement.Using tax depreciation for tax purposes and straight-line depreciation for financial reporting, do deferred tax liabilities lead to true future cash flow?
- One of the basic techniques used in evaluating after-tax operating cash flows is to Select one: a. add cash expenses to net income. b. subtract depreciation from net income. c. add noncash charges to net income. d. subtract retained earnings from net income.Depreciation is incorporated in cash flows because it: A. Is unavoidable cost B. Is a cash flow C. Involves an outflow D. Reduces tax liabilitywith the help of the statemnet of income attached, answer the following Did the cash flow from operations cover the dividend payment made by the firm? If the firm has generated excess cash from operations, how did the firm invest the excess cash? If not, what were the sources of cash the firm used to pay for the capital expenditures and/or dividends? Did the firm use the working capital (current asset and current liability) accounts other than cash and cash equivalents as sources of cash, or uses of cash?
