Suppose that you generate a cash based income statement and determine that CFO equals 75 percent of cash dividends paid and payments on current maturities of long term debt. What is the significance of this in terms of the firm’s cash flow position?
Answer to relevant QuestionsExplain the importance of identifying the “primary” source of repayment. Clearly, the primary source of repayment is always “cash.” The analysis question is really one of identifying the source of the cash used to ...Explain why collateral alone does not justify extending credit. Cite examples, using real estate or agricultural products as collateral. Indicate whether each of the following is a source of cash, use of cash, or has no cash impact. a. Firm issues new long term debt. b. Firm prepays operating costs. c. Because the firm buys another firm, it amortizes ...What are the major expenses associated with making consumer loans? What is the average size of consumer installment loans at small banks? How does loan size affect loan rates that banks charge on consumer loans? Explain what impact accumulated other comprehensive income (from unrealized securities gains or losses) has on bank regulatory capital.
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