Why is interest Expense and Depreciation added back, when calculating Free Cash Flow, if Free Cash Flow is suppose to represent the money that a business can give out to it's lenders and Owners, without the business being affected? Can you you provide an example?

What are some tools that companies have to manage their (net operating) working capital?  Provide examples of inventory and receivables management techniques.  What is the Cash Conversion Cycle and why is this a useful metric?  Are there risks if this is too low?

Examine the key reasons why a business may not want to hold too much or too little working capital. Provide examples that illustrate the consequences of either situation. Explain alternative ways a business can use free cash flow. Provide examples.

Which of the following statements is FALSE?i. Using the payback rule, you can calculate how much profits are earned over the investment period.ii. The IRR is sensitive to the timing of the cash flows.iii. Shareholders have the first claim on the cash flows of the company.

What is the main reason the net income and cash flow from operations differ from each other?

What effect will the cash payment of an account payable have on the Balance Sheet?   Group of answer choices Decrease an asset and decrease stockholders’ equity Decrease an asset and decrease a liability Increase an asset and increase a liability Increase one asset and decrease another asset

If the income statement of a financial plan shows that the business will be profitable, why is there a need for a statement of cash flows?

Do you think that cash and profits are the same? Can you think of any business transactionsthat do not involve an immediate movement of cash?

In looking at Free Cash Flow, which of the following is true? The value of any asset business is based solely on the free cash flow and it is important to buyers and sellers. FCF's are the discounts received from vendors for purchases made The net income of a company should be equal to its free cash flow. FCF's represent the funds available to business owners that can be withdrawn after all business related costs and investments have been paid.