Why are the cash flows so difficult to estimate accurately?

Q: What are the benefits of The Cash-Flow Statement?

A: Statement of Cash Flows: Statement of cash flows is a financial statement that reports the sources…

Q: Describe the procedure of Estimating Risky Cash Flows?

A: Risky cash flow means the future cash flow which falls short of the expectations. This shortage may…

Q: Explain the difference between net cash flow and operating cash flow. What causes these two numbers…

A: Net cash flow is the excess of cash inflows over the cash outflow or it is calculated by deducting…

Q: What are normal and nonnormal cash flows?

A: Answer: Normal cash flows projects are those in which one or two cash outflows occur at the outset…

Q: What is the alternative way of preparing the Cash Flow Statement?

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

Q: What happens to cash if the value of other current assets rises? Is it possible that current assets,…

A: Here is the answer :

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: What is the statement of cash flows, and what are some questions it answers?

A: A cash flow statement is the summary of cash flow which provides the details of the cash and cash…

Q: nalysts pay so much attention to the Statements of Cash Flows versus the Income Statement?

A: Income statement shows the profit and loss over the period after deductions of expenses from the…

Q: How is IRR calculated with unequal net cash inflows?

A: Definition:   Internal rate of return method (IRR): Internal rate of return method is one of the…

Q: How much is the expected cash flow disregarding other simulations?

A: Capital budgeting is a method used for finding the profitability of investment proposals. It…

Q: Which financial statements are more useful to consumers than others when it comes to cash flow…

A: The question tells about financial statements are more useful to consumers than others when it comes…

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: How can we separate cash flows from operating cash flow?

A:

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: 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: What is discounting and why do we discount future cash flows?

A: A cash flow statement is a financial statement that shows how much cash and cash equivalents are…

Q: Describe the process of estimating Risky Cash Flows?

A: Process of estimating Risky Cash flows.

Q: What do the Cash flow diagrams represent?

A: They are utilized by accountants and engineers in the management to mirror the money exchanges that…

Q: What factors lead to a better cash flow position? How?

A: Cash flows refer to the amount of net cash and cash equivalents that flow in and out of the…

Q: WHAT DOES THE STATEMENT OF CASH FLOWS SHOW US?

A: Since cash play a vital role in making businees successful. The flow of cash need to be understood…

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 are the most important parts of the cash flow statement?

A: Since organizations can produce and utilize cash in a few distinct manners, the statement of cash…

Q: What cash flows are associated with Descartes’ rule of signs and Norstrom’s criterion?

A: Cash flows series can be of two types i.e. non-conventional and conventional cash flow series. Non…

Q: What is incremental cash flow?

A: Cash flow is the movement of cash in the company. While making an investment in any project, cash…

Q: Which of the following are Cash Outflows from Investing?

A: The cash flow statement shows the cash inflow and cash outflow from the operating activities,…

Q: Calculate the present value and future value of an uneven cash flow stream.

A: A stream of cash flow is uneven  when all the amounts in the series of cash flows are unequal .i.e.,…

Q: Why do investors find both income statement and statement of cash flows useful?

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: What are the best startegy for flactuating cash flow?

A: The movement of funds into or out of a business is referred to as cash flow.Inflows are represented…

Q: Explain the Hedging against cash flow risk.

A: Hedging is a strategy by which a financial instrument is used to minimize the risk created by the…

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 are the characteristics of a strong statement of cashflows?

A: The Cash Flow Statement also referred to as statement of cash flows or funds flow statement. It is…

Q: The operating cash flow is?

A: Cash Flow Statement:- It is a statement prepared to know the liquidity available with the entity.…

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: Why must we convert cash flows to a common basis?

A: In creating a cash flow statements, it is important to translate accumulated net profits to a cash…

Q: How is payback calculated with unequal net cash inflows?

A:

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…

Q: Why is the indirect method of cash flow confusing and why is it helpful?

A: Cash Flow Statement - Under Cash Flow there are three type activities involved - 1. Operating…