Question: Explain why it is possible for a company to report a net profit after tax and have less cash in the bank at the end

Explain why it is possible for a company to report a net profit after tax and have less cash in the bank at the end of the year than at the beginning of the year. Is it possible for the reverse to happen - i.e. report a net loss but have more cash in the bank at the end of the year than at the beginning of the year? Give one example for each scenario to illustrate your answer.

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 Economics Questions!

Comments on future company direction. Changes in products: quality improvements, new introductions, etc. Manufacturing changes: capacity, processes. Include justification where applicable

Dr Tom is considering purchasing a GP centre in the rural area of Torrens Island. . Note: Dr Tom needs to consider accounting information requirements for different stakeholders surrounding his GP...

Question Dr Tom is considering purchasing a GP centre in the rural area of Torrens Island.. Note: Dr Tom needs to consider accounting information requirements for different stakeholders surrounding...

Question 5 Explain why it is possible for a company to report a net profit after tax and have less cash in the bank at the end of the year than at the beginning of the year. Is it possible for the...

It is possible for a company to report a net profit after tax and have less cash in the bank at the end of the year and vice versa at the beginning of the year.a net loss but have more cash in the...

get an anwer and solution of problem in both paper 1 full disclousure second revenue recognition IV. Test Questions and Solutions Chapter 1 Multiple Choice 1. What basic financial statements can be...

The statement of financial positions for RSA Pty Ltd for fiscal years 2019 and 2020 are presented below: RSA Pty Ltd Statement of financial position 2019 2018 Assets Cash $ 39,000 $ 31,000 Accounts...

The statement of financial positions for Taringa Pty Ltd for fiscal years 2019 and 2020 are presented below: Taringa Pty Ltd Statement of financial position 2020 2019 Assets Cash $ 39,000 $ 31,000...

The statement of financial positions for Taringa Pty Ltd for fiscal years 2019 and 2020 are presented below: Taringa Pty Ltd Statement of financial position 2020 2019 Assets $ 31,000 60,000 17,000...

The statement of financial positions for Taringa Pty Ltd for fiscal years 2019 and 2020 are presented below: Taringa Pty Ltd Statement of financial position 2020 2019 Assets Cash $ 39,000 $ 31,000...

The investment Seyran 1.ad is 55% holding in Isaac Ltd. An offer of GH 350 has been made for Seyram Lid's holding and has been accepted by the directors. I 5. Following further feasibility study...

Morten Construction Company provides construction services for major projects. Managers at the company believe that construction is a people-management business, and they list the following as...

An extrinsic p-type semiconductor is made by doping pure Si with Boron, which is a group III element. At -50C the number of holes is 1022 per cubic meter. If the acceptor energy state is 0.02 eV...

Round to the nearest hundredth: 0 . 3 4 1 4

This activity can be used for the term long project.In the resources that accompany this book, you will find a Powerpoint file that contains a detailed outline for a research project. This file...

Is there a difference in the mean miles traveled per week by each of two taxicab companies operating in the Grand Strand area? The Sun News, the local paper, is investigating and obtained the...

Why does the test for homogeneity follow the same procedures as the test for independence?

A new centrifugal pump is being considered for an application involving the pumping of ammonia. The specification is that the flow rate be more than 5 gallons per minute (gpm). In an initial study,...

A tapered solid steel propeller shaft is shown in Fig. 1.91. Determine the torsional spring constant of the shaft.

Among a group of 5 8 programmers, who know either Java or Python or both, 1 5 only know Java and 1 3 only know Python. What is the probability of randomly choosing a programmer who knows both...

Do not move closer than an arms distance. (This distance literally applies to Northern Europe. In Southern Europe this distance is slightly smaller.) If you get closer than this distance, you seem...

2. Now list, after going through a-c, three things that you want to be the impres-sion you want others to be left with after meeting you, and that you want to be lasting over time. List four points...

Relax your shoulders