Why is the cash flow statement included in the general purpose financial statement package? Explain your answer fully.
Answer to relevant QuestionsExplain each of the following:a. Payables deferral periodb. Inventory self-financing periodc. Inventory conversion periodd. Receivables conversion period What does it mean when an entity has negative cash from operations? What circum stances can result in this? Why is it cause for concern? Is it necessarily bad news for an entity? Explain.An entity has a very profitable year, yet its cash flow and cash from operations are negative. Explain how this can happen.Managers often receive bonuses based on the net income of the entities they manage. Do you think it would be better to use cash from operations as a basis to award bonuses rather than net income? Explain your answer.In 2017, Anyox Ltd. (Anyox) reported net income of $200,000. All revenues and expenses were in cash, except for a $30,000 depreciation expense.Required:a. Calculate cash from operations for Anyox in 2017.b. Suppose that ...
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