Question: Why does a decrease in receivables turnover create the need for cash from operating activities?

Why does a decrease in receivables turnover create the need for cash from operating activities?

Step by Step Solution

★★★★★

3.48 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

When receivable turnover decreases it means that the company has ... View full answer

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

Document Format (1 attachment)

Word file Icon

285-B-M-A-F-S-A (1659).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Q:

The section on cash from operating activities in the statement of cash flows for Marismo Services contained the following information: Operating Activities Net income .............. $260,000...

Q:

Why does a decrease in NWC result in a cash inflow to the firm?

Q:

Why does decentralization create the need for responsibility accounting in an organization?

Q:

why does a decrease in receivables turnover create the need for cash from operating activities?

Q:

Part 1 (20\%) Sanborn Corporation's condensed comparative income statement and balance sheet for 20X8 and 20X7 appears below. Required: 1. Prepare schedules showing the amount and percentage changes...

Q:

Sanborn Corporation's condensed comparative income statement and balance sheet for 20X8 and 20X7 appears below. Required: 1. Prepare schedules showing the amount and percentage changes from 20X7 to...

Q:

Develop brief answers to each of the following questions: 1. Why does a decrease in receivable turnover create the need for cash from operating activities? 2. Why would ratios that include one...

Q:

Develop brief answers to each of the following questions: 1. Why does a decrease in receivable turnover create the need for cash from operating activities? 2. Why would ratios that include one...

Q:

Please answer the following questions, also see the attachment, please answer as well. Please show work if possible, I need right away. Question 1. 1. (TCO A) Amazon Building, Inc. won a bid for a...

Q:

Decide all places where in the Cash Flow statement (under indirect format) category will be shown. Follow the format of Cash Flow Statement shown below. Please correct if something is wrong and...

Q:

INTRAVENOUS INFUSION When a drug is administered with intravenous infusion, the amount of drug in patient's blood- stream starts with zero and it increases until the rate the drug is entering the...

Q:

Presented below are the four assumptions and four principles used in measuring and reporting accounting information. Assumptions Principles a. Economic entity .......... e. Historical cost b....

Q:

Data can be incomplete but accurate: Say True or False TRUE FALSE

Q:

In the early 1800s in England, a debate arose in Parliament over the Corn Laws, restriction on imports of grain into the country. David Ricardo, the father of the comparative advantage concept,...

Q:

What two accounts are affected by each of these adjustments? A. Recorded accrued interest on note payable B. Adjusted unearned rent to correct C. Recorded depreciation for the year D. Adjusted...

Q:

What two accounts are affected by each of these adjustments? A. Billed customers for services provided B. Adjusted prepaid insurance to correct C. Recorded depreciation expense D. Recorded unpaid...

Q:

Name two types of adjusting journal entries that are commonly made before preparing financial statements? Explain, with examples.

Q:

Penny Francis inherited a $100,000 portfolio of investments from her grandparents when she turned 21 years of age. The portfolio is comprised of the following three investments. Based on the current...

Q:

A good friend of yours has always wanted to run their own business and is thinking of investing in a food truck. He has done some initial market research (surveys/sampling), and there seems to be...

Q:

An investor is bearish on the euro and believes it will decrease against the Japanese Yen. The investor purchases a currency put option on the euro with a strike price (exchange rate) of 135/. When...