Can a company be profitable but not liquid? Explain.

Q: Is it feasible for a new company endeavor to be lucrative while also experiencing financial…

A: Introduction: According to Entrepreneur, it takes a minimum of three years for a company to become…

Q: How the corporate governance is useful for a company? O a. It maximizes the mismanagement of the…

A: ANswer -    Option C is Correct Option - C. It Maximizes the Share Prices of the Company .

Q: How financial analysis is used in company? Evaluate some example analysis?

A: Financial analysis is an analysis of financial information and it helps in assessing the performance…

Q: 3. How does operating leverage impact the operating risk and profit levels of a company?

A: Operating leverage measures the percentage increase in operating income which is a result of change…

Q: Explain, with examples, why accruals reverse overstate the firm's profit.

A: Aggressive accounting is related to the practice of accounting which is designed in order to…

Q: what determines the market value of a company are not profits, per se, but rather, cash flows?

A: Market value of a company : In simple words, the market value of a company refers to the value of a…

Q: What is the importance of a pro forma income statement to a firm?

A: Pro forma is referred as the sake of form. It is used to represent the information in a formal…

Q: What are the options available to a company in the event of a financial failure?

A: Overspending and a more considerable degree of illiquid assets might lead to the firm's financial…

Q: What are the sources or capital available to business? Why is the capital mix of a company so…

A: The sources of capital available to business: Equity: A company's capital is raised by issuing…

Q: why is profit maximization supposedly not the most important goal of a company

A: Profit Maximization: The process of raising the profit earning capacity of the business is known as…

Q: The ability of a company to meet its long-term obligations is termed: A) Profitability B) Solvency…

A: As we basically know that ,there are different types of companies are formed, some of them are ,…

Q: is it possible for a company to expand itself out of existence, and how can this be avoided as a…

A: Introduction : When a company goes out of existence and shuts down its operations, it is stated that…

Q: Financial analysis considers the profitability, liabilities and other financial capacities of a…

A: Financial analysis of a company certainly looks into the profitability, debt levels and other key…

Q: Accounting Just because the gross profit margin is positive does not mean that a company will be…

A: Ratio analysis is a tool that establishes a relationship between the different items. It is used to…

Q: equity does not represent the market value of the company

A: There are various methods of arriving at a fair valuation of a company. Each of the methods give us…

Q: it better to finance a company thru debt or thru equity? Why? What are the downside and upside to…

A: A business can raise funds predominantly either by  Issuing Equity, or Borrowings Loans, Issuing…

Q: How can a company expand itself out of existence, and how can this be avoided as a financial…

A: Introduction: Finance managers are accounting professionals who are concerned with the financial…

Q: Is it feasible for a new company endeavor to be lucrative while still experiencing financial…

A: Meaning of Lucrative Lucrative which simply describes as brings profitability into the business…

Q: How will a company view working capital – positive, negative, or a necessary evil?

A: The difference between current assets and current liabilities is used to calculate working capital.…

Q: How can a company’s operations generate a healthy profitand yet produce meager or even negative cash…

A:

Q: What are the advantages of bringing IPO  into company?

A: To run the business, the firm needs funds for a long time. To arrange the funds, firms issue various…

Q: Explain how a company can be “profit rich, yet cash poor.”

A: Corporation: A corporation is a form of business entity that is incorporated through the state…

Q: Why do you think companies use revenue recognition as a primary means for inflating profits?

A: Revenue Recognition: Revenue recognition is the recording of revenues in the books of the company…

Q: Does it ever make sense for a profitable company with positive cash flow to seek external financing?…

A: External financing is any kind of business funding you acquire from sources outside the company.…

Q: Explain the effect on the company's financial statements if a company switches from the historical…

A: A historical method is the accounting principle method in which the asset is recorded at the…

Q: Respond to Jerry’s criticism that shareholders’ equity does not represent the marketvalue of the…

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…

Q: Why would managers misrepresent the financial results oftheir companies?

A: Fraud:   It is an intentional misappropriation of the assets or the financial records of an…

Q: analyze

A: Profitability analysis refers to allocation of expenses & analyzing the profits or earnings of…

Q: Required: Analyze the company's strengths and weaknesses in terms of liquidity, solvency and…

A: Financial ratio: Financial ratios can be defined as accounting ratios that reflects the relation…

Q: Under what assumptions market value of a company does not depend on its capital structure

A: One important concept in Modigliani and Miller theorem that market value does not depends on the…

Q: What can you say about the market value of the company? is it positve or is negative?

A: In finance market value of a company is the worth of the company and the worth of the company is…

Q: why do firms use non financial measures

A:

Q: How might a statement ofcash flows help a turnaround expert decide how to rescue a struggling…

A: Cash flow statement is a statement indicating the inflows and outflows of cash in an…

Q: How can you tell of a company is profitable?

A: Profit. of a Company:After deducting all of the costs associated with running a business, the amount…

Q: What are some of the measures used to evaluate the financial stability of a company?

A: When a firm pays off all its expenses, liabilities and is running smoothly with bright future…

Q: What is causing the volatility for this company? Is anything in this statement unusual or concerning…

A: when analysing the company financials it is important to consider the every variables as it affect…

Q: In what ways the operating, investing and financing cash flows of a growing firm might be different…

A: Cash flow statement has three sections operating activities, investing activities, and the financing…

Q: What can I recommend to this company to increase its liquidity position?

A: Current ratio: It is one of the liquidity ratios which is calculated by dividing the current assets…

Q: Examine the key reasons why a business may not want to hold too much or too little working capital.…

A: The key reasons why a business wants to hold efficient working capital is discussed below:…

Q: Is debt good for a company? Why or Why not?

A: In terms of finance, debt can be defined as the borrowed money on which the borrower of the fund is…

Q: Which of the following would be most difficult to assess? Select one :- a. the liquidity position of…

A: The liquidity position of a firm can be easily assessed through liquidity ratios like : current…

Q: How can the company, which is a profitable one, have insufficient cash flows? Explain your answer.

A: Quickclick Media Ltd. announces that their profits in the current year have increased over the…

Q: Which of the following are not part of the components ofthe DuPont system for measuring and…

A: DuPont system is used to measure the return on the equity.

Q: Is it realistic to believe that an optimal capital structure exists or might be achieved by a…

A: The first  and the foremost thing to be addressed is what capital structure is composed of. A…