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How is it possible to have high sales and high profits and run out of cash while running a business?
It is quite possible in the case where you have high levels of Accounts receivables and inventory and low levels of accounts payables. A sale is recorded the moment an invoice is raised and shipment deliverd that does not necessarily mean you received cash and goes to acc receivables. Similarly, if you maintain high levels of inventory, lot of your money remains tied up untill the inventory gets sold off. on the contrary, if you have weaker payment terms with your suppliers, you end up paying earlier than your acc recivables convert to cash. Therefore, high sales and high profit does not necessarily mean a good cash position.
How does accounts receivable decrease cash flow?
Accounts receivable is basically the debt owed to a company by their customers. Therefore, if a company has a high amount of accounts receivable, the company is unable to use that money, as opposed to if it were cash. If a customer buys something on credit, it is an "I Owe You" to the company. The company is not able to use the money until the customer pays. Once the customer pays, the company has an increase in cash.
What does time dependence of cash flows mean?
In any project, Cash flows of year two is dependent with cash flows of year one so it is called time dependency of cash flows. For example: if public reacted positively high in the market for a new product that introduced by a company, resulting high initial cash flows, then cash flows in future periods are also likely to be high. Therefore, it is time dependency of cash flows. S0193585
What is sales taxes because of high-income people pay a smaller percentage of their income?
Regressive.
What is the state income tax in billings mt?
Montana Personal Income TaxesTax Rate Range: - 1%; High - 6.9%
Is it possible to withdraw cash from a credit card?
Yes, it is possible to withdraw cash from a credit card, but it is generally not recommended due to high fees and interest rates.
Is it possible to put cash on a credit card?
Yes, it is possible to put cash on a credit card through a cash advance. This allows you to withdraw cash from an ATM using your credit card, but it often comes with high fees and interest rates.
What are the effects of a decrease in net profit margin?
A decrease in net profit margin means that the business is spending a lot of money on its expenses. The business may still have a high gross income.
Why is it possible for a population with a high birth rate to decrease in size?
I dont think its possible for the population to decrease because if people keep on having babies the population is just going to grow larger than what it was before.
Is it possible for a population with a high birth rate to decrease in size explain?
I guess it is if you are in war or your country is tortured by a disease. Then many people will be killed in war/get infected and die. After that even if the birth rate is high, the death rate would be higher so the population will decrease in size. It is possible. (Sorry for not professional answer.)
Is it possible for a population with a high birth rate to decrease in size explain.?
I guess it is if you are in war or your country is tortured by a disease. Then many people will be killed in war/get infected and die. After that even if the Birth Rate is high, the Death Rate would be higher so the population will decrease in size. It is possible. (Sorry for not professional answer.)
Is it possible for a population with a high birth rates to decrease in size explain?
I guess it is if you are in war or your country is tortured by a disease. Then many people will be killed in war/get infected and die. After that even if the Birth Rate is high, the Death Rate would be higher so the population will decrease in size. It is possible. (Sorry for not professional answer.)
Is it possible for a population with high birth rate to decrease size?
If more people were dying than being born, then yes
Which one of the four financial statements is your favorite and why?
It depends on why you are using the financial statements. What do you want to know? How is the company using their cash? Look at the Statement of Cash Flows. Liquidity ratios, amount of debt, kinds of assets... look at the Balance Sheet. What are they selling, where do the revenues come from, what does the product cost or what other expenses do they have, what kind of profits do they have... look at the Income Statement. Ideally, all are important. Income is fine, but if it is all paper income (non-cash), there may be cash flow problems in the near future--thus the importance of looking at the cash flow statement. Income is great, but if liabilities are too high, the income may not be adequate to service the debt in the long term--thus the importance of looking at the balance sheet. Statement of changes in equity, of course, to see if there is anything significant other than income, or perhaps dividends.
How is it possible to have high sales and high profits and run out of cash while running a business?
It is quite possible in the case where you have high levels of Accounts receivables and inventory and low levels of accounts payables. A sale is recorded the moment an invoice is raised and shipment deliverd that does not necessarily mean you received cash and goes to acc receivables. Similarly, if you maintain high levels of inventory, lot of your money remains tied up untill the inventory gets sold off. on the contrary, if you have weaker payment terms with your suppliers, you end up paying earlier than your acc recivables convert to cash. Therefore, high sales and high profit does not necessarily mean a good cash position.
What is a high and low income countries?
They are countries with high or low income. High income countries (HICs) tend to be in the Northern hemisphere and low income countries (LICs) tend to be in the Southern hemisphere. There are also middle income countries (MICs).
Firms with a high degree of operating leverage are?
Have a high amount of fixed costs relative to their variable costs. DOL= CM / Net Income We derive CM by the eqaution of Selling Price - Variable Costs If a firm has high variable costs relative to their selling price then they will have a small CM and therefore their DOL will decrease. Have a high amount of fixed costs relative to their variable costs. DOL= CM / Net Income We derive CM by the eqaution of Selling Price - Variable Costs If a firm has high variable costs relative to their selling price then they will have a small CM and therefore their DOL will decrease.
