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?

Q: Analysts use the statement of cash flows to measure: Group of answer choices A)The ability of a…

A: The correct answer is: d)All of the above

Q: How to incease profitability in a service company if Operating cash does not cover debt?

A: operating cash flows -  cash flows from the operations of the business are known as operating cash…

Q: Which of the following questions is not addressed by the statement of cash flows? Multiple Choice O…

A: Cash Flow Statement: A cash flow statement is a kind of financial statement that offers aggregate…

Q: Consider the following: While accrual accounting information is imperfect, ignoring it and making…

A: Yes, completely agree with the statement. Accrual accounting is a basis of accounting according to…

Q: The following are goals‘and objectives in working-capital management. Which is the LEAST ACCURATE?…

A: Working capital is the capital required for the day-to-day operation of the business. If this amount…

Q: The cash generated by a corporation that is available to pay the company's investors is measured by:…

A: Investors are those individuals or companies who have invested their money in a company in exchange…

Q: Which of the following is not correct about the negative cash flows? O a. You cannot cover your…

A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…

Q: True or false, the financing activities section of the statement of cash flows reflects the cash…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Consider the following: While accrual accounting information is imperfect, ignoring it and making…

A: We will answer only three sub parts of the question as it is not specified which sub part is to be…

Q: with the help of the attached cash flow statements of the company, evaluate the companies for…

A: Cash flow statement is the financial statement which is made to know the cash derived from each…

Q: what does cash burn impact when owning a business?

A: Cash burn- It is the rate  by which a company uses its cash in the business over a period of time…

Q: What does it mean to have "free cash flow"? What may make free cash flow more important to an…

A: Introduction: The residual amount of cash that remains with the company after all operational…

Q: what are the differences between the income statement and statement of cash flows and can you show a…

A: The financial statements of a company are prepared to measure the financial performance of the…

Q: Question 1 The following has been extracted from the financial statements of Rowett: Statement of…

A: Cash conversion cycle indicates that number of days required to recover money from inventories to…

Q: Of the three types of business activities summarized in astatement of cash flows, which type is…

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

Q: D. True or false, the financing activities section of the statement of cash flows reflects the cash…

A: Statement of Cash Flows explains the differences between the net income and cash and cash equivalent…

Q: In the long run, is it more important for a business to havepositive cash flows from its operating…

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

Q: Assume that the assets are converted to cash at the estimated current values and the business is…

A: 1. When a company liquidates, there are various creditors a company has to pay. Types of creditors…

Q: erating Investing Financing

A: A cash flow statement  is a statement which provides information about the changes in cash and cash…

Q: Is it possible for a company to have significant net income in the same time period that net cash…

A: Yes! It is possible because net income is based on accrual concept i.e. income is recognized as and…

Q: a)What are the major sources of cash for the firm? What are the major uses of cash for the firm?

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: a) Define both Financing Cash Flows and Investing Cash Flows.  b) For Financing Cash Flows, explain…

A: Cash flow from financing activities (CFF) is a section of a company’s cash flow statement, which…

Q: QUESTION 1: Describe what the cash flow statement shows? QUESTION 2: Explain why cash is…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: If a company’s current assets (such as accounts receivableand inventories) are allowed to grow out…

A: Statement of cash flows is a financial statement, which is prepared to identify and analyze the…

Q: When using EBITDA instead of net income to measure a firm's operational characteristics, why are…

A: EBITDA means earnings before interest, tax, depreciation and amortisation. It means all these have…

Q: A. In the long run it is more important for a business to have positive cash flows from its…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Investors and creditors are looking for more than just profitability? What may be gleaned from the…

A: Introduction: We'll answer the first question because the exact one was not specified. Please ask a…

Q: Does depreciation decrease cash in a business? Explain your answer.

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: Which of the following statement on the firm's net working capital is incorrect? A. Holding other…

A: Formula for net working capital is current assets - Current liabilities.

Q: What is the time value of money? Why should accountantshave an understanding of compound…

A:

Q: Revenues are normally considered to have been earned whena. All possibility of return has expired.b.…

A: Revenue Recognition: Revenue recognition refers to recording revenue in the books of accounts.…

Q: Why might a business invest cash in temporary investments?

A:

Q: is the profit that a business makes a reliable indicator of its cash balance?

A: The profit is not a reliable indicator of the cash balance. This is because there are a number of…

Q: Help Lucy explain to Marion how a company can show a profit on their income statement yet show…

A: Income statement: it shows the revenue generated and expense incurred and the net difference is Net…

Q: True or false, the financing activities section of the statement of cash flows reflects the cash…

A: Cash flow statement means the statement which shows the cash inflow and outflow from three different…

Q: counting class I am learning to find accounting rate of return. To solve for this I subtracted net…

A: Since there are multiple sub parts are given , so as per answering guidelines we do only first…

Q: Why you have not taken depreciation(deduct from profit and then add to obtain cash flows) into accou

A: Depreciation   is a admissible expenses  for taxation purpose i.e., tax will be calculated on the…

Q: How can the owners use the cash flow information or what can the statement of cash flows helps the…

A: Cash flow statement is a statement which shows all cash inflows and cash outflows of business during…

Q: What effect will the cash payment of an account payable have on the Balance Sheet?   Group of…

A: We have the following question What effect will the cash payment of an account payable have on the…

Q: I know in order to find the cash flow from operating activities using the indirect method you start…

A: Adjustments regarding current assets and current Liabilities while preparing cash flow statements…

Q: comparison to investing and financing activities, it is often said that cash from operating…

A: GIVEN   comparison to investing and financing activities, it is often said that cash from operating…