During 2022, Omega Corporation's inventory is expected to decrease by $5. Its accounts payable is expected to decrease by $9. Omega Corporation has forecasted net income of $1 and depreciation expense of $6 for 2022. Based on the above, what is Omega Corporation's total forecasted net cash flow?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter9: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 3P: AFN Equation Refer to Problem 9-1. Return to the assumption that the company had 5 million in assets...
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Question 13
During 2022, Omega Corporation's inventory is expected to decrease by $5. Its accounts
payable is expected to decrease by $9. Omega Corporation has forecasted net income of $1
and depreciation expense of $6 for 2022.
Based on the above, what is Omega Corporation's total forecasted net cash flow?
Question 14
What is the most likely reason a start-up want additional external financing greater than
what's needed to cover its net cash (out)flow amount?
O To provide additional cash to cover unexpected expenses
O To reduce the potential for an IPO
To fund management bonuses
O To minimize dilution for its existing shareholders
Transcribed Image Text:Question 13 During 2022, Omega Corporation's inventory is expected to decrease by $5. Its accounts payable is expected to decrease by $9. Omega Corporation has forecasted net income of $1 and depreciation expense of $6 for 2022. Based on the above, what is Omega Corporation's total forecasted net cash flow? Question 14 What is the most likely reason a start-up want additional external financing greater than what's needed to cover its net cash (out)flow amount? O To provide additional cash to cover unexpected expenses O To reduce the potential for an IPO To fund management bonuses O To minimize dilution for its existing shareholders
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