Why is it not necessarily bad for the cash flow from assets to be negative for a particular period?
Answer to relevant QuestionsCould a company’s change in net working capital be negative in a given year? Calculating OCF Ranney, Inc., has sales of $18,700, costs of $10,300, depreciation expense of $1,900, and interest expense of $1,250. If the tax rate is 40 percent, what is the operating cash flow, or OCF? The Stancil Corporation provided the following current information: Proceeds from long-term borrowing......... $17,000Proceeds from the sale of common stock ...... 4,000Purchases of fixed assets ...Cusic Industries had the following operating results for 2012: sales = $ 19,900; cost of goods sold = $ 14,200; depreciation expense = $ 2,700; interest expense = $ 670; dividends paid = $ 650. At the beginning of the year, ...A ratio that is becoming more widely used is return on investment. Return on investment is calculated as net income divided by long-term liabilities plus equity. What do you think return on investment is intended to measure? ...
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