What is the difference between profit and cash flow from operations?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (15 reviews)
The basic difference is that profits are not cash and a firm can only pay its bills with ...View the full answer
Answered By
Joseph Mwaura
I have been teaching college students in various subjects for 9 years now. Besides, I have been tutoring online with several tutoring companies from 2010 to date. The 9 years of experience as a tutor has enabled me to develop multiple tutoring skills and see thousands of students excel in their education and in life after school which gives me much pleasure. I have assisted students in essay writing and in doing academic research and this has helped me be well versed with the various writing styles such as APA, MLA, Chicago/ Turabian, Harvard. I am always ready to handle work at any hour and in any way as students specify. In my tutoring journey, excellence has always been my guiding standard.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Introduction to Corporate Finance
ISBN: 978-1119171287
4th edition
Authors: Laurence Booth, Sean Cleary, Ian Rakita
Question Posted:
Students also viewed these Financial Accounting questions
-
What is the difference between profit and profitability? How are the two interrelated?
-
What is the difference between the profit margin for ROA and the profit margin for ROCE? Suggest a scenario when a firms profit margin for ROA would increase and its profit margin for ROCE would...
-
What is the difference between the pretax operating cash flow break-even point and the accounting operating profit break-even point?
-
Researchers Dumas and Dunbar wanted to see whether stereotypes related to creativity can influence a subjects creativity. The 96 subjects were randomly placed into three groups of 32 each. One group...
-
A simplified version of the life cycle of grocery sacks is shown below. 4 In the late 1970s, supermarkets began to replace paper sacks with polyethylene (plastic) sacks. In the 1980s, a movement to...
-
A 2.40-kg ball is attached to an unknown spring and allowed to oscillate. Figure E14.7 shows a graph of the balls position x as a function of time t. What are the oscillations (a) Period, (b)...
-
A rotary plug valve needs to be replaced to repair a machine, and the probabilities that the replacement will be a flange style (low pressure), flange style (high pressure), wafer style, or lug style...
-
A radio tower rises to height h above flat horizontal ground. At the top is a magnetic dipole antenna, of radius b, with its axis vertical. FM station KRUD broadcasts from this antenna at angular...
-
IVANHOE COMPANY Trial Balance August 31, 2022 Before Adjustment After Adjustment Cr. Dr. Cash $10,246 Cr. Dr. $10.246 Accounts Receivable 8,272 8.836 Supplies 2,350 470 Prepaid Insurance 3,760 2,350...
-
Here is a list of words or phrases discussed in this chapter: 1. Corporation 2. Creditor 3. Accounts receivable 4. Partnership 5. Stockholder 6. Common stock 7. Accounts payable 8. Auditors opinion...
-
What factors may influence a firm's decision to enter into share repurchases?
-
Why should all firms prepare a cash budget?
-
Consider tracheary elements with annular thickening (annular secondary walls) and those with pitted walls. Which is weaker? Which has a large percentage of its primary wall free of secondary wall and...
-
Randomly selecting a drug screening result and getting one that is a false positive. Randomly selecting a drug screening result and getting one that is a false negative. Determining Whether Events...
-
Discuss the methods of measurement of the fair value of equity instruments allowed under IFRS 2.
-
Randomly selecting a drug screening result and getting one that is a false positive. Randomly selecting a drug screening result and getting one from someone who does not use drugs. Determining...
-
Explain what is meant by repricing and how it is accounted for under IFRS 2.
-
If the number of blood donors is n = 11, find the probability that the number with Group O blood is x = 9. Assume that when blood donors are randomly selected, 45% of them have blood that is Group O...
-
The purchasing officer for The Majestic Emporium has prepared a purchases budget for the financial year ending 31 March 2017, based on the following data: Purchases for February 2017 Purchases for...
-
A consumer magazine is evaluating five brands of trash compactors for their effectiveness in reducing the volume of typical household products that are discarded. In the experiment, each block...
-
In the M&M tax world, what is the value of levered firm (VL) in Practice Problem 22 if the tax rate is 30 percent? What is the cost of levered equity? What is the market risk premium (MRP) given U =...
-
In the M&M tax world, calculate the value of the unlevered firm (U) and the identical risk-levered firm (L). Corporate tax rate = 20%; perpetual EBIT for U and L = $2 million; cost of capital of U =...
-
Susan and Celia are twins but have very different attitudes toward debt. Susan believes that firms should have a D/E ratio of 0.2 while Celia believes that the D/E ratio should be 1.1. Both sisters...
-
Martinez Company buys merchandise on account from Marigold Company for $592. Martinez sells the goods to Ellis for $900 cash. Use a tabular summary to record the transactions for Martinez Company...
-
The section has tension and compression steel reinforcement. When the neutral axis depth is at infinity, c = , the section is in uniform compression, all points on the section have 0.003 compressive...
-
The Big Choo Choo Company (BCCC) owns a rail line from the town of Isolated to the coastal port of Notso. It cost them $20 million to build the rail line in 2016. It is now 2023. The Small Gold...
Study smarter with the SolutionInn App