Question: Explain why it is possible for a company to report high level of net profit while reporting a little cash generation from cash flow from

Explain why it is possible for a company to report high level of net profit while reporting a little cash generation from cash flow from operating activities in the same financial year. In your answer provide two possible reasons. (word limit 150)

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 Accounting Questions!

A city planner is trying out a new crosswalk system for bicycles to maximize how quickly they can get across town. They compare speed of travel before and after the crosswalk system and found a...

Explain why it is possible for a company to report high level of net profit while reporting a little cash generation from cash flow from operating activities in the same financial year. In your...

It is becoming widely expected that interest rates will rise in the coming year. In recent weeks the 10 year US bond has risen from about 1.50% to 1.80%. Using the appendix for chapter 2 on Webster...

Report: Your report should include: I. NSU Cover page (1 page in length). It will present the name of the case and the author(s) of the report. II. Executive Summary (1 page in length). The Executive...

URN 09/1026 DIGITAL BRITAIN Final Report JUNE 2009 DIGITAL BRITAIN - Final Report Published by TSO (The Stationery Office) and available from: Online www.tsoshop.co.uk Mail,Telephone, Fax & E-Mail...

Anyone got complete answers to this quiz? 1. 5a_39 In technical analysis, what is a support level for a stock? A. Demand exceeds supply. B. Supply exceeds demand. C. Volume sold equals volume...

Hi I was wondering If someone can check my ratios. I had to do the ratios for two companies for years 2015 and 2014. Can you please check them for me and let me know if there is anything wrong and...

What are the net earnings and net operating cash flows of Air New Zealand in 2012? Mention four specific sources of the difference between the net profit and the net cash flows from operating...

What is the importance of the analysis of the statement of cash flows? Please identify/provide factors entering into the interpretation of cash flows from operations. LESSON PROPER: Week 10 Chapter...

902B01 STONE GROUP CORP. yay To We London Can o n 600 601 3 . V -1029 On April 20, 2001, Yan Fangjia, poneral manager of the Instruments Division of Stone Group Corp. in Beijing, China, received a...

dear tutor, i need you help to write the audit planning memo for this company (le chateau inc) ANNUAL REPORT 20 15 CORPORATE PROFILE Le Chteau is a leading Canadian specialty retailer offering...

Using the Gibbs function data, determine the equilibrium constant KP for the reaction H2 + 1/2 O2 H2O at (a) 298 K and (b) 2000 K. Compare your results with the KP values listed in Table A28.

The point P(1, 0) lies on the curve y = sin(10 /x).. (a) If Q is the point (x, sin(10/x)), find the slope of the secant line (correct to four decimal places) for x = 2, 1.5, 1.4, 1.3, 1.2, 1.1, 0.5,...

evaluate f ( - 1 ) , f ( 2 ) , f ( - 3 ) and f ( 5 ) f ( x ) = { - 2 x + 3 x 1

Which of the following is not an advantage of becoming involved in an office romance

3. Several years ago, 8,000 Amtrak workers agreed not to disrupt service by walking out, at least not until a court hearing was held. Amtrak had asked the courts for a temporary restraining order,...

6. What actions might make employers lose elections?

3. This case and this chapter both had something to say about how organizational culture influences ethical behavior. What role do you think culture played at Enron? Give five specific examples of...