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What is the 2 most common ways a profitable company can decrease cash?
Wiki User
∙ 12y ago
if company is defensive mode they should be apply divestiture to short down those uni which is not profitable if not so doing retruchment
Wiki User
∙ 12y ago
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What is an outflow of cash profitable operations the sale of equipment the sale of the company's common stock or the payment of cash dividends?
the payment of cash dividends
Do increases in inventory increase or decrease cash flow?
Increase in amount of inventory causes the decrease in cash flow of company as company pays the cash to acquire inventory and hence reduction in cash flow occurs.
A payment of a portion of an accounts payable will?
Decrease Cash (credit) and Decrease Account Payable (debit). This is if you're paying cash which of course is the common way to pay an account payable. An account payable is what you owe another person or company, by paying even a portion of the account it will decrease your liability (what you owe) as well as decreasing your amount of cash on hand.
Does a decrease in prepaid expense increase or decrease cash flow?
Decrease in prepaid expenses increases the cash flow because if there is no prepaid expenses already in balance sheet then cash has to be paid to fulfill expenses but as there are prepaid expenses and company save cash that;s why it increases the cash flow.
Does dividend payments increase or decrease cash flow?
Dividend payments are negative Cash Flows for Financing Activities because they decrease the amount the company has on hand.
Will a credit always decrease a cash account?
A cash account will always be decreased by a credit, but a credit will not always decrease a cash account. The only time a credit decreases cash is when the company pays out cash, whether it's to purchase supplies, inventory, or pay wages etc. Here is two examples of a credit in a transaction, one will decrease cash, the other will not. Company X buys $1,000 in inventory from Company Y and pays CASH. The debit for this transaction will increase inventory, the credit will decrease cash since company X is paying cash for this transaction. Using the same transaction however, changing Company X wants to purchase this inventory on "credit" the debit in this transaction as above will still increase inventory, however, since Company X has chosen to purchase this inventory on credit and not use cash and accounts payable will be set up and the credit will "increase" accounts payable. Remember, Assets will "always" increase with a debit and decrease with a credit. Liabilities will "always" decrease with a debit and increase with a credit.
The most profitable cash crop in south carolina and georgia was?
Rice was the most profitable cash crop.
Does an increase in interest payable increase or decrease cash flow?
Increase in interest payable increases the cash flow of company as payment is not cleared when due and which causes temporary increase in company's cash flow
Does an increase in inventory increase or decrease cash flow?
Increase in inventory reduces the cash because by using cash company purchased inventory to be use in resale.
A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing?
statement of cash flows
Can a firm with positive net income run out of cash?
Yes. If the company has debt service (principal payments on loans) that exceed the cash generated from operations, it could also run out of cash. Also, if the company is spending cash on other assets, such as machinery and equipment, or building up inventories, they could be profitable and still run out of cash.
What made growing cash crops profitable for the South?
The practice of slavery made the growing of cash crops profitable in the South. It was decades after slavery that mechanization made it extremely profitable again.
