What happens to cash flow when working capital increases?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (8 reviews)
Working capital Due to increase in working capital level cash flow decrease ...View the full answer
Answered By
Khurram shahzad
I am an experienced tutor and have more than 7 years’ experience in the field of tutoring. My areas of expertise are Technology, statistics tasks I also tutor in Social Sciences, Humanities, Marketing, Project Management, Geology, Earth Sciences, Life Sciences, Computer Sciences, Physics, Psychology, Law Engineering, Media Studies, IR and many others.
I have been writing blogs, Tech news article, and listicles for American and UK based websites.
4.90+
5+ Reviews
17+ Question Solved
Related Book For
Question Posted:
Students also viewed these Managerial Accounting questions
-
Ready plc is financed entirely by equity capital with a required return of 13 per cent. Ready's business is such that as sales increase, working capital does not change. Ready currently has 10m in...
-
a. Describe briefly the legal rights and privileges of common stockholders. b. Use a pie chart to illustrate the sources that comprise a hypothetical company's total value. Using another pie chart,...
-
1. When making capital expenditure decisions, firms should not consider which of the following? a. After-tax incremental cash flows b. Additional working capital requirements c. Sunk costs d. Salvage...
-
XYZ Corporation is considering two mutually exclusive projects that require a $150,000 investment each. Project A has an expected life of 6 years and will generate net cash flows of $35,000 per year....
-
Suppose the surface charge density over a sphere of radius R depends on a polar angle as = 0 cos , where 0 is a positive constant. Show that such a charge distribution can be represented as a result...
-
We assumed frictionless flow in solving the bump case, Prob. 10.65, for which V2 = 1.21 m/s and y2 = 0.826 m over the crest when hmax = 15 cm, V1 = 1 m/s, and y1 = 1 m. However, if the bump is long...
-
Six test scores are shown below. The first 4 test scores are 15% of the final grade, and the last two test scores are 20% of the final grade. Find the weighted mean of the test scores. 80 70 84 93 89...
-
Analysis and evaluation: Identify the control deficiencies in the payroll process for The Vane Corporation. Recommend the changes necessary to improve the control structure. Arrange your answer in...
-
Why would someone choose Business as a program of study? Explain, What would be the pros and cons of studying Business Administration? What are some future plans a graduate can do once their degree...
-
Marty has been driving his Dads old beat up car to work and school. To embarrass him, Biff, the local bully, has challenged Marty to a race. If he wins, he gets $1,000 but if he loses, he pays...
-
What kinds of items in an income statement do not involve a flow of cash?
-
How taxation is paid calculated from the taxation payable and the taxation liability at the start and end of the period?
-
An airplane consumes 36.0 gal of gasoline in flying 425 mi. Under similar conditions, how far can it fly on 52.5 gal?
-
The Sarbanes-Oxley Act a. created the Private Company Accounting Board. b. allows accountants to audit and to perform any type of consulting work for a public company. c. stipulates that violators of...
-
HEB Corporation had net income for 2024 of $60,450. HEB had 15,500 shares of common stock outstanding at the beginning of the year and 20,100 shares of common stock outstanding as of December 31,...
-
Use the following cash payments journal to record the preceding transactions. Date 2024 Ck. No. Account Debited Cash Payments Journal Other Accounts DR Post. Ref. Accounts Payable DR Merchandise...
-
Assume Nile.com began April with 14 units of inventory that cost a total of $266. During April, Nile.com purchased and sold goods as follows: Under the FIFO inventory costing method and the perpetual...
-
Which principle or concept states that businesses should use the same accounting methods and procedures from period to period? a. Disclosure b. Conservatism c. Consistency d. Materiality
-
Your firm is the external auditor of Southwood Trading Ltd. and you are auditing the fi nancial statements for the year ended June 30, 2020. Southwood Trading has sales of $25 million and the...
-
Solve each problem. Find the coordinates of the points of intersection of the line y = 2 and the circle with center at (4, 5) and radius 4.
-
Turn to the annual report of a listed company which you have used for activities in previous chapters. Find every item of information about current liabilities. (Start with the financial statements...
-
The following file of papers was found in a cupboard of the general office of Green Ltd at the end of the accounting year. Explain how each would be treated in the financial statements and state the...
-
On 1 December Year 1 a company paid 2,400 as an insurance premium to give accident cover for the 12 months ahead. The accounting year-end is 31 December. Required Prepare an accounting equation...
-
You are working in a clinic and have just roomed a patient. When you come out of the room, you overhear me complaining to two co-workers about you and how slow you are. [Take the role of the other...
-
What are the advantages and pitfalls of the media's appetite for telling and selling stories? As we reach the point where almost all media exist on the Internet in some form, how have our culture and...
-
When looking at a project to convert data into information, data analysis is the methodology thatshould be used to accomplish the output. When reviewing the tools used in the course and the data that...
Study smarter with the SolutionInn App