What might RR do to reduce its target cash balance without harming operations?

Q: Control risk in cash

A: Risk is referred as uncertainty or loss. Financial risk is referred as the variability of actual…

Q: w does stretching out AP enhance cashflow?  be specific in terms of operating cashflo

A: Cash flow are very important for any firm because without cash no business can survive for much…

Q: What is the incremental cash flows from switching credit policies? a. b. What is the cost of…

A: Part a: Computation Incremental cash flows from switching credit policy  as follows: Incremental…

Q: Cashflow vs. net income: Which strategy is more appropriate?

A: instruction: The direct and indirect routes to a cash flow statement are both found there.

Q: What is the effect of cashless society to finance system?

A: The financial system is the most important factor in economic transformation. Finance helps bridge…

Q: what are usefulness and weakness of discounted cash flow method?

A: Discounted Cashflow Method is the Method in which we compare Initial Project cost with expected…

Q: Compare the various cash management alternatives.

A: Cash management can be described as the method of cash collection and cash handling. Evaluation of…

Q: What methods can be used to delay a firm’s cash outflows?

A: Cash Outflows: It is the cash that go away from a business. Such cash can be used for paying staff…

Q: Which of the following is not an approach to replacement analysis? Solve, a. Cash flow approach b.…

A: Replacement analysis is the study of organizing, reasoning and implementation of successful…

Q: What are net operating loss carryforwards and how can they provide cash savings?

A:

Q: Explain how each of the following factors would probably affect a firm’s target cash balance if all…

A: Overdraft: An overdraft is an extension of credit from a loaning organization that is arranged if an…

Q: If current liabilities increase, what is the effect on cash? What about a decrease in current…

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: What methods can be used to speed up a firm’s cash inflows?

A: Cash inflows:Cash inflow can be defined as cash or money attained by an institution, firm or company…

Q: What role do incremental cash flows play in a replacement analysis?

A: Answer: Introduction: Replacement analysis is one of the key analyses in the concept of capital…

Q: How can we estimate Risky Cash Flow?

A: Companies always predict the cash flows related with the project because it helps to company to…

Q: How can we estimate the profits (more precisely, the cash nows) that the assets will generate during…

A: It is a process of acquiring an approximation or projection or forecast of a firm’s future budgetary…

Q: What is irregular cash flow stream?

A: Cash Flow has a flow concept. There can either be cash inflow or cash outflow. Generally, for…

Q: Can a signal be sent if there is no cash flow?

A: Operating cashflows reflect the cash generated from main business activity.

Q: Why are cash balances in excess of those needed to financebusiness operations viewed as relatively…

A:

Q: Is it possible for a firm’s cash cycle to be longer than its operating cycle? Explain why or why…

A: Operating cycle is the average time between acquisition of inventory and conversion into cash. Cash…

Q: Achieving profitability will automatically assure sufficient amounts of cash.  True or false?

A: Profitability is the ability of the company to earn a profit. Profit is an amount of revenue over…

Q: What should a firm’s goal be regarding the cash conversion cycle,holding other things constant?…

A: The cash conversion cycle refers to the number of days between paying for crude materials or…

Q: What are the strenghts and weaknesses of the discount cash flow methods?

A: discounted cash flow methods are used to calculate to find the future cash inflow discount into its…

Q: Why are the cash flows so difficult to estimate accurately?

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Would the move to a JIT system have a one-time or recurring impact on operating cash flow?

A: JIT inventory system: JIT system is a method adopted by manufacturers with an objective of…

Q: Why is cash management important?

A: Cash management is a technique used to manage cash of the entity. It helps in managing the cash that…

Q: What is the principal disadvantage of the direct method of reporting cash flows from operating…

A: Cash flows from operating activities is an important section of cash flow statement which shows all…

Q: What does a negative Cash Flow from Assets ( CFFA) indicate?

A: Cash flows are an integral part of any business. To keep operating, businesses require positive cash…

Q: Explain how the EOQ inventory model can be modified and used to help determine the optimal sizeof a…

A: Economic order quantity (EOQ) aims to assess the correct amount of inventories to be ordered in…

Q: hy is not a bad thing to have negative cash from financing activities?

A: The cash flow statement depicts how the company's financial situation has evolved over time. Cash is…

Q: what apposing goals must be achieved in cash management?

A: Cash Management is the process of collecting the cash from various resources and effectively…

Q: What are the key factors that can lead to an under/overstatement of  the cash balance

A: Cash balance is the balance appearing in the Cash edger or Cash Books after all income and…

Q: What factors determine the need for cash in a firm's operation?

A: It would be desirable on the part of the management to provide for sufficiently large amount of cash…

Q: what is analytical tool in evaluating cash flows?

A: Cash flows are cash inflows and cash outflows of the business for the particular period of time.…

Q: Explain different methods for cash transactions and the costs associated with each. How these costs…

A: Cash-basis of accounting- When transactions are made in cash, the cash basis of accounting is used…

Q: What are the strenghts and weaknesses of the Discounted Cash Flow methods

A: Cash flow is the movement of money from a particular investment. Discounted cash flows mean…

Short-term Financing

Short-term financing occurs when a company finds an external funding source to run the business for a short period of time that takes less than a year to pay off. Working capital financing is another term for short-term financing. When a company's cash flow from operations is uneven, short-term financing is used to generate cash flow and cover operating expenses. Short-term finance is typically used by businesses to fund inventory, accounts receivable, and loans.