Question: How could the availability of cash inflow and cash outflow
How could the availability of cash inflow and cash outflow data be used to improve on the accuracy of the liquidity and debt coverage ratios presented previously? What specific ratio measures would you calculate to assess the firm’s liquidity and debt coverage, using cash flow rather than financial statement data?
Answer to relevant QuestionsAssume that a firm’s total assets and sales remain constant. Would an increase in each of the ratios below be associated with a cash inflow, a cash out-flow, or would there be no effect on cash? a. Current ratio b. ...How would you determine the size of the annual end-of-year deposits needed to accumulate a given future sum, at the end of a specified future period? What effect does the magnitude of the interest rate have on the size of ...How would the future value of a mixed stream of cash flows be calculated, given the cash flows and applicable interest rate? Why is it so difficult to find unknown interest or growth rates and numbers of periods when all other variables are known? When must you use trial-and-error techniques? Robert Blanding’s employer offers its workers a two-month paid sabbatical every seven years. Robert, who just started working for the firm, plans to spend his sabbatical touring Europe at an estimated cost of $25,000. To ...
Post your question