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Questions and Answers
An increase in accounts payable is a
An increase in accounts payable is a
- Use of cash
- Source of cash (correct)
- Neither nor source of cash
The cash flow that is available for distribution to a corporation's creditors and stockholders is called the
The cash flow that is available for distribution to a corporation's creditors and stockholders is called the
- operating cash flow
- net capital spending
- cash flow from assets (correct)
- cash flow to stockholders
The cash flow related to interest payments less any net new borrowing is called the
The cash flow related to interest payments less any net new borrowing is called the
- operating cash flow
- capital spending cash flow
- net working capital
- cash flow to creditors (correct)
Assuming a firm earns taxable income, an increase in _____ will cause the cash flow from assets to increase
Assuming a firm earns taxable income, an increase in _____ will cause the cash flow from assets to increase
A negative cash flow to stockholders indicates which one of the following with certainty?
A negative cash flow to stockholders indicates which one of the following with certainty?
Ratios that measure how efficiently a firm manages its assets to generate sales are referred to as ____ ratios
Ratios that measure how efficiently a firm manages its assets to generate sales are referred to as ____ ratios
When preparing pro forma statements, which one of the following an analyst is most likely to estimate first?
When preparing pro forma statements, which one of the following an analyst is most likely to estimate first?
A firm's external financing need is met by
A firm's external financing need is met by
The plowback ratio is
The plowback ratio is
Common-size financial statements express all balance sheet accounts as a percentage of
Common-size financial statements express all balance sheet accounts as a percentage of
Flashcards
Increase in Accounts Payable
Increase in Accounts Payable
Represents cash coming into the company, as it delays cash outflow.
Cash Flow from Assets
Cash Flow from Assets
Cash flow available for distribution to the company's investors (creditors and stockholders).
Cash Flow to Creditors
Cash Flow to Creditors
Cash flow reflecting interest payments less any net new borrowing.
Depreciation Expense Increase
Depreciation Expense Increase
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Negative Cash Flow to Stockholders
Negative Cash Flow to Stockholders
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Asset Management (Turnover) Ratios
Asset Management (Turnover) Ratios
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Projected Sales in Pro Forma Statements
Projected Sales in Pro Forma Statements
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External Financing Need
External Financing Need
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Plowback Ratio
Plowback Ratio
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Common-Size Balance Sheet
Common-Size Balance Sheet
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