What impact will the following actions have on the firm's cash balance? a. The firm sells some
Question:
a. The firm sells some goods from inventory.
b. The firm sells some machinery to a bank and leases it back for a period of 20 years.
c. The firm buys back 1 million shares of stock from existing shareholders?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (9 reviews)
a Cash will increase as one current asset inventory is exchan...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0078034640
7th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
Question Posted:
Students also viewed these Corporate Finance questions
-
A firm currently offers terms of sale of 3/20, net 40. What effect will the following actions have on the implicit interest rate charged to customers that pass up the cash discount? State whether the...
-
Current Ratio What effect would the following actions have on a firms current ratio assume that net working capital is positive. a. Inventory is purchased. b. A supplier is paid. c. A short-term bank...
-
What impact would the following actions have on the operating and cash conversion cycle s? Would the cycles increase, decrease, or remain unchanged? a. More raw material than usual is purchased. b....
-
A business student has $3,500 available from a summer job and has identified three potential stocks in which to invest. The cost per share and expected return over the next two years are given in the...
-
Using the income statement and balance sheet presented here, compute the following ratios. Compare your results with the industry averages. What strengths and weaknesses are apparent? Ratio Industry...
-
The following trial balance has been extracted from the ledger of Andrea Howell, a sole trader, as at 31 May 20X3, the end of her most recent financial year. The following additional information as...
-
Using the sum of squares obtained in Exercise 12.3, test at the level of significance \(\alpha=0.01\) whether the differences among the means obtained for the 3 samples are significant. Data From...
-
Use the information for Sheridan Shacks in Exercise 15 and assume a tax rate for the company of 35 percent. a. If Sheridan Shacks wants to earn an after-tax profit of $182,000, how many garden sheds...
-
In an electric motor, a coil with 139 turns of radius 1.80 cm can rotate between the poles of a magnet. The magnetic field magnitude is 0.200 T. When the current through the coil is 37.9 mA, what is...
-
Transactions are first journalized and then posted to ledger accounts. In this exercise, however, your understanding of the relationship between the journal and the ledger is tested by asking you to...
-
Reconsider the data in Practice Problem 13 which imply that you have $100,000 of total pretax income to allocate between your salary and your firm's profits. What allocation will minimize the total...
-
Here are simplified financial statements of Phone Corporation from a recent year: INCOME STATEMENT (Figures in millions of dollars) Net sales Cost of goods sold Other e Depreciation Earnings before...
-
Weller, Inc., sold 1,000,000 shares of $25 par value common stock at $32. It subsequently repurchased 100,000 of those shares at $50 per share and then sold 70,000 of those shares at $55. Calculate...
-
Treloar Ltd has 1 0 employees, who are each paid $ 7 5 0 per week for a 5 day working week. Each employee is entitled to 8 days accumulating non - vesting sick leave per year. At 1 July 2 0 1 9 the...
-
List and explain two management tools in the planning process and two measurable performance indicators. Explain in detail.
-
Janice will need to pay $200 at the end of every month for the next 12 months, except for the payment of the 8th month. What is the present value, assuming a rate of 4%, compounded quarterly?
-
The following questions relate to the coupon and par bond described above (a) Is the bond price ofthis coupon bond ever below the price of the par bond? Explain youranswer (b.) What happens to the...
-
discuss this question: what do you perceive to be the purpose and role of Accounting? How is accounting information potentially relevant to you in your area of business? After posting your response,...
-
Ali, Broc and Cheema have been in partnership trading as Abche They share profits and losses in the ratio 3:2:1. Gavin and Hanuko have been in partnership trading as Gavu. They share profits and...
-
In your readings, there were many examples given for nurturing close family relationships in this ever-evolving technological society we live in Based upon your readings and research describe three...
-
Can cash flow from operations be positive if net income is negative? Can it be negative if net income is positive? Give examples.
-
During the last year of operations, Theta's accounts receivable increased by $10,000, accounts payable increased by $5,000, and inventories decreased by $2,000. What is the total impact of these...
-
Balance sheet items are usually entered in order of declining liquidity. Place each of the terms below in the appropriate place in the balance sheet. Accounts payable ........................Total...
-
How does the implementation of a centralized database system impact the efficiency and data accuracy in a large retail organization?
-
Identify some processes related to a workplace, assess the benefits and concerns that may arise as a result of the relative sizes of P-time with respect to D-time. In a table include the benefits and...
-
industry competitors and customers analysis & develop a communications pla. Choose any company and analyze its industry, competitors and customers. Then either present theirs communications plan or...
Study smarter with the SolutionInn App