0
What else can I help you with?
What factors determine the need for cash in the firm's operation?
Operating Cash Flow is calculated using adjusting net income for items (depreciation, changes to accounts receivable, and changes to inventory).
The difference between the amount of cash on the firm's books and the amount credited to it by the bank is?
The amount of cash liquidates possessed by a firm are its assets. The amount of credit lines extended to (and available) by a firm are considered liabilities.
Used to predict when a firm will likely experience temporary shortages or surpluses of cash?
It would be a Cash Budget. A Cash Budget is a detailed forecast of future cash flows that helps financial managers identify when their firm is likely to experience temporary shortages or surpluses of cash.
What is the conclusion on cash management?
Cash is the lifeblood of each and every business. If a firm maintain its cash level at optimum way then it should succeed in long-term. Unless a firm fail to maintain optimum cash level then it has lose its business.
What would A firm's purchase of plant and equipment would be considered a use of cash for?
A firm's purchase of plant and equipment is considered a use of cash because it represents a cash outflow for acquiring long-term assets necessary for production or operations. This expenditure reduces the firm's cash reserves and is typically recorded in the investing activities section of the cash flow statement. Such investments are crucial for growth and operational efficiency but initially require significant cash investment.
What factors determine the need for cash in the firm's operation?
Operating Cash Flow is calculated using adjusting net income for items (depreciation, changes to accounts receivable, and changes to inventory).
Where are some of the characteristics of a firm with a long cash cycle?
. What are some of the characteristics of a firm with a long cash cycle?
What is the liquidity position of the firm?
liquidity position of a firm is the amount of liquid assets ,that is, cash ,bank balance and those assets which can be converted into cash as and when required by the firm which is owned by the firm currently.
What is hypothesis on cash management?
the firm effectively use of cash management
What is retained cash flow?
Retained cash flow is the cash generated from operation which can be used for reinvestment. So basically it is cash from operation minus all dividend payments.
What is free cash flows?
Cash resources available for the owners of a firm are known as free cash flows.
What is operation cash flow?
Operation Cash Flow Ratio is a financial ratio that is used to identify the percentage of money raised by the company as part of the operation cash flow to the total debt the company owes. Operating cash flow is the cash generated from the operations of the organization after excluding taxes, interest paid, investment income etc.FormulaOCFR = Operation Cash Flow / Total Debts
What is the average cash cycle of a retail firm?
The average cash cycle of a retail firm varies depending with the size of the firm. It also varies according to the geographical location and the type of goods being retailed.
The difference between the amount of cash on the firm's books and the amount credited to it by the bank is?
The amount of cash liquidates possessed by a firm are its assets. The amount of credit lines extended to (and available) by a firm are considered liabilities.
How do free cash flows and the weighted average cost of capital interact to determine a firms value?
Free cash flows represent the cash generated by a firm that is available to be distributed to investors. The weighted average cost of capital (WACC) is the average rate of return required by investors in order to finance the firm's operations. By discounting the free cash flows at the WACC, we can determine the present value of those cash flows, which ultimately determines the firm's value. If the present value of the free cash flows exceeds the firm's invested capital, then the firm is considered to have positive value.
Used to predict when a firm will likely experience temporary shortages or surpluses of cash?
It would be a Cash Budget. A Cash Budget is a detailed forecast of future cash flows that helps financial managers identify when their firm is likely to experience temporary shortages or surpluses of cash.
What is the conclusion on cash management?
Cash is the lifeblood of each and every business. If a firm maintain its cash level at optimum way then it should succeed in long-term. Unless a firm fail to maintain optimum cash level then it has lose its business.
