Question: A decrease in net working capital for the period: decreases the cash flow from assets. indicates a firm has sold some of its long-term assets.

A decrease in net working capital for the period:

decreases the cash flow from assets.

indicates a firm has sold some of its long-term assets.

is a cash inflow for the firm.

is caused by a firm purchasing additional fixed assets.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Timeliness and responsibility in design, production and delivery are features of Competing on cost Competing on response Competing on differentiation Both A and B A firm has sales of $ 3 1 6 , 0 0 0...

Q:

Garca and Martinez manufacture widgets and currently have $12 million in taxable income. The company recently spent $250,000 to put together a bid for a government contract, and this morning they...

Q:

QUESTION 1 UML Inc. had an EBIT of 75,000, depreciation expense of 8,500, and paid 20,000 in taxes. Its interest costs were $10,000; its long-term borrowing reduced by $4,000; it raised $6,000 in new...

Q:

-|---------g ----- -----:- - -- - 1. Cash Flows Hitter Corporation's accountants prepared the following nancial statements for year- end 2014. FlITTEFt CDHPDRATIDH Income Statement 2 D 1 4 Fleyen ue...

Q:

3.) A(n) _ in net working capital for the period is a cash inflow for the firm. 4.) The cost of goods sold includes both the fixed and the variable costs of producing the items included in...

Q:

Year 7 5553,162.68 $77,137.05 $476,025.63 85 546,096.89 5,508.96 540,587.93 1,514,883.09 86 $46,096.89 5,365.21 $40,731.68 1,474,151.41 87 $46,096.89 5,220.95 $40,875.94 1,433,275.47 88 $46,096.89...

Q:

7. Alaris Spaceships has cash of $2,700 and accounts receivable of $3,300. The inventory cost $6,100 and can be sold today for $9,600. The fixed assets were purchased at a cost of $49,300 of which...

Q:

A decrease in net working capital for the period: is generally caused by an increase in the inventory level. is a cash inflow for the firm. is caused by a firm selling fixed assets. decreases the...

Q:

The following balance sheet and income statement should be used: 39 Taylor, Inc. 2015 Income Statement Net Sales 8 01:24:17 Less: Cost of Goods Sold Less: Depreciation Earnings Before Interest and...

Q:

please show formulas. DOVER CORP (DOV) BALANCE SHEET Fiscal year ends in December. USD in millions 2020-12 2019-12 2018-12 2017-12 2016-12 2015-12 362 513 1,137 836 397 1,217 806 128 2,548 396 1,232...

Q:

1. which of the following is the assertion with the highest inherent risk in auditing inventory? a. completeness b. rights c. existence d. properly classification on the balance sheet 2. which of the...

Q:

Would similar results be obtained by use of the computerassisted method and the traditional colonchange method?

Q:

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...