measure of operating cash flows available for corporate purposes
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A:
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___________is a measure of operating cash flows available for corporate purposes after providing sufficient fixed asset additions to maintain current productive capacity and dividends.
a. Percent of sales method
b. Ratio Analysis
c. Trend Analysis
d.
e. None of the above
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- Classification of Cash Flows The following are several items that might be disclosed on a companys statement of cash flows presented using the indirect method. a. Net income b. Depreciation expense c. Issuance of common stock d. Loss on disposal of equipment e. Purchase of a building f. Decrease in accounts payable g. Converted bonds into common stock h. Sale of long-term investment i. Payment of interest j. Increase in inventory Required: 1. Indicate whether each item should be classified as a cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, or noncash investing and financing activity. 2. CONCEPTUAL CONNECTION Why is the proper classification of cash flows important?An assumption inherent in a company’s IFRS statement of financial position is that companies recover and settle the assets and liabilities at Select one: a. their net realizable value. b. the present value of future cash flows. c. the amount that is probable where “probable” means a level of likelihood of at least more than 50%. d. their reported amountsIn a construction cash flow statement which of the following working capital account represents a source of cash of the firm? Decrease in Accounts Receivable. Increase in Accounts Receivable. Decrease in Accounts Payable. Decrease in accrued Taxes Payable.
- Analysts use the statement of cash flows to measure: Group of answer choices A)The ability of a company to repay loans. b)The ability of a company to expand by investing in new equipment. c)The amount of excess cash generated by operations. d)All of the above e)None of the aboveA firm's operating cash flow (OCF) is defined as ________. a. EBIT plus depreciation b. gross profit minus operating expenses c. gross profit minus depreciation d. EBIT times one minus the tax rate plus depreciationWhich of the three types of activities reported on the statement of cash flows is the mostimportant to evaluate when analyzing a company’s long-term survival?a. Operating activitiesb. Investing activitiesc. Financing activitiesd. Noncash investing and financing activities
- In a statement of cash flows (indirect method), the amortization ofpatents of a company with substantial operating profits should bepresented as a(n): a. cash flow from investing activitiesb. cash flow from financing activitiesc. deduction from net incomed. addition to net incomeWhich of the following should be deducted from net incomein calculating net cash flow from operating activities using the indirect method? Group of answer choices a loss on sale of long-term investments a increase in accounts payable a increase in accounts receivable preferred dividends declared and paidThe cash flow statement shows how much money is generated by an entity's operating activities, which are its main objects..." (A. Thomas and A.M. Ward, 2019 pp576) You must explain why net cash from operations differs from net profit, as well as the impact that working capital management has on cash flow. Develop your response by delving more into the wide variety of challenges and factors involved in managing one type of working capital, such as inventory, trade receivables, or trade payables. Asap
- In a construction cash flow statement which of the following workingcapital account represents a source of cash of the firm? A. Decrease in Accounts Receivable.B. Increase in Accounts Receivable.C. Decrease in Accounts Payable.D. Decrease in accrued Taxes Payable.Part AReview the existing literature to critically examine the relative information content of theincome statement and the statement of cash flows. Why do investors find both incomestatement and statement of cash flows useful? Part BDownload the annual financial reports of BHP Ltd, Santos Ltd, and Funtastic Ltd for the year2019, 2018 and 2017. Examine the consolidated Cash Flow Statements for each companiesacross three years. Answer the following questions about each of the three cash-flowstatements.1. For each companies [except mentioned otherwise as in c), g) and i) below], across threeyears on the Statement of Cash Flows discuss:a) What are the major sources of cash for each firm? What are the major uses ofcash for each firm?b) What was the trend in cash flow from (continuing) operations for each firm?c) Compare and contrast the cash flow from operations with the net profit after taxin income statement. Explain in detail the major reasons for the differencebetween these two figures.…True or False T F. A statement of cash flow is a single item statement because it reports the change in cash balance at the beginning of the period and the end of the period. T, F. Under the capital maintenance concept, a corporation’s net income for a period of time is the amount that it could distribute to its shareholders without depleting the amount of its retained earnings. T, F. All tangible assets that are used by a company for its operations should be classified as: property, plant and equipment. T, F. Noneconomic resources that are used in the operations of a business but have no physical existence are classified as: intangible assets. T. F. Current assets are cash and other assets that a company expects to convert into cash, sell, or consume within 1 year or the normal operating cycle, whichever is longer. T. F Accumulated other comprehensive income is usually reported before Retained Earnings.