Question: I like the cash flow statement, as in practice it was used the most for mergers & acquisition work. In a startup, we expect operating

I like the cash flow statement, as in practice it was used the most for mergers & acquisition work. In a startup, we expect operating cash flows to be zero or negative, financing cash flows to be positive, and investing cash flows to be negative

If a company is ten years old, and we see negative flows for operations as well as positive flows from investing, we have concerns as management is selling in the future to pay the present.

Why would it matter how long the company has been in business?

Step by Step Solution

★★★★★

3.37 Rating (150 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The length of time a company has been in business c... View full answer

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!

Why is the cash flow statement considered to be a powerful analysis tool?

Why is the cash flow statement the most important statement for the entrepreneur?

The cash flow statement categorizes like transactions for optimal reporting. Requirement 1. Identify each of the following transactions as one of the following: Operating activity (O) Investing...

I like the cash flow statement, as in practice it was used the most for mergers & acquisition work. In a startup, we expect operating cash flows to be zero or negative, financing cash flows to be...

How is the following obtained? IFRS 13-04 a-b (Part Level Submission) The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to its...

IFRS 14-01 a-c (Part Level Submission) The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to its financial statements, is available...

How is the following solved? CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES (EUR milions) 2013 2015 4,001 2014 6,105 Net profit before minority interests 3,947 Translation adjustments Tax...

just only 2 questions ,please read the requirment word by word and be careful about the style of the reference(APA) , file 3.1 is for question 2..BTW,please focus the every step FINANCE SPOTLIGHT...

can any expert help me with the below assignment just only 2 questions ,please read the requirment word by word and be careful about the style of the reference(APA) , file 3.1 is for question...

10-K Ford Motor Company Review Ford Motor Company's Form 10-K for 2012. Explain the purpose of a company?s 10-K and how it interprets the firm?s financial strength. Write a description of three...

If money is worth 8% compounded quarterly, how long (to the nearest day) before a scheduled payment of $6000 will $5000 be an equivalent payment? For the purpose of determining the number of days in...

The following information was taken from the 2012 annual reports of Walgreens and The Limited (dollars in millions): REQUIRED: Compute the conservatism ratios for both companies and comment on the...

Biologists consider a species of animal or plant to be endangered if it is expected to become extinct within 2 0 years. If a certain species of wildlife is counted to have 1 6 2 7 members at the...

(5 points) A, P and D are n x n matrices. Check the true statements below: A. If AP PD, with D diagonal, then the nonzero columns of P must be eigenvectors of A. B. Al is diagonalizable if A has n...

(5 points) Find the values of the coefficients a, b and c so that the conditions f(0) = 4, f'(0) = -7, and f"(0) = 11 hold for the function f(x) = ae* + be + ce. a = b =

(5 points) Solve the system using the substitution or elimination method S 5x + 2y = -14 7x + 3y = -20 How many solutions are there to this system? A. None B. Exactly 1 C. Exactly 2 D. Exactly 3 E....

(5 points) Find all the values of k for which the matrix 1 1 0 k-3 -k +4 is not diagonalizable over C. k = (Enter your answers as a comma separated list.)

(5 points) For which value of k does the matrix -1 k A = -9 1 have one real eigenvalue of multiplicity 2? k =

It is believed that the average hour of study per day to pass a certain exam is a Norma variable with 4 hrs. a sample of 16 students was asked and gave the following opinion of their own hours:...

On January 1, 2017, Nanke Inc. issued $500,000 of 9 percent, five-year bonds payable at 104. Nanke has extra cash and wishes to retire all the bonds payable on January 1, 2018, immediately after...

The agreement under which Karset Transport Ltd. issued its long-term debt requires the restriction of $150,000 of the company's Retained Earnings balance. Total Retained Earnings is $337,500, and...

Weel Soo purchases Canadian Utilities Inc. bonds as a long-term investment. Suppose the face amount of the bonds is $300,000 and the purchase price is 101.30. The bonds pay interest at the stated...

A manager must make a decision on delivery alternatives. There are two shippers, A and B. Both offer a two-day rate. In addition, A offers a three-day rate and a nine-day' rate, and B offers a...

What is annual service level and how is it related to z?

A brick maker (BM) in Alberta mixes dry ink into its bricks to make them brown. BMs demand for dry ink is 60 tons per year. Currently, BM buys the dry ink from an import merchant that buys the ink...