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Cash flow

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1) other things held constant, which of the following alternatives would increase a company's cash flow for the current year?

A) increase the number of years over which fixed assets are depreciated for tax purposes.

B) pay down the accounts payable

C) reduce the days sales outstanding without affecting sales or operating costs.

D) pay workers more frequently to decrease the accrued wages balance

E) Reduce inventory turnover ratio without affecting sales or operating costs.

2)which of the following is correct? (assume that the risk free rate is a constant)

A) if the market risk is premium increases by 1%, then the required return will increase for stocks that have a beta greater than 1.0

B) the effect of a change in the market risk premium depends on the slope of the yield curve.

C) If the market risk premium increases by 1% then the required return on all stock will rise by 1%

D) if the market risk premium increases by 1% then the required return will increase by 1% then the required return will increase by 1% for the stock that has a beta of 1.0

E) the effect of a change on the market risk premium depends on the level of the risk free rate.

3) JBS Inc. recently reported net income of $4750 and depreciation of $885. how much was its net cash flow, assuming it had no amortization expense and sold none of its fixed assets?

A) $4831.31

B) 5085.59

C)5353.25

D) 5635.00

E) 5916.75

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1) other things held constant, which of the following alternatives would increase a company's cash flow for the current year?

C) reduce the days sales outstanding without affecting sales or operating costs.

This will lead to saving in the investments in accounts ...

Solution Summary

This answers a few questions regarding cash flow

$2.19
Similar Posting

Tovar Corporation: Cash Flow Statement

Please note that values are different here than on the attachment problem 14-4B.

Prepare the net cash provided by operating activities section of the company's statement of cash
flows for the year ended December 31, 2008, using the indirect method.

The three accounts shown below appear in the general ledger of Tovar Corp.during 2008.

Equipment
Date Debit Credit Balance
Jan. 1 Balance 160,000
July 31 Purchase of equipment 70,000 230,000
Sept. 2 Cost of equipment constructed 53,000 283,000
Nov. 10 Cost of equipment sold 49,000 234,000

Accumulated Depreciation?Equipment
Date Debit Credit Balance
Jan. 1 Balance 71,000
Nov. 10 Accumulated depreciation on
equipment sold 30,000 41,000
Dec. 31 Depreciation for year 28,000 69,000
Prepare partial statement of
cash flows?indirect method.

Retained Earnings
Date Debit Credit Balance
Jan. 1 Balance 105,000
Aug. 23 Dividends (cash) 14,000 91,000
Dec. 31 Net income 67,000 158,000

Instructions
From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method.The loss on sale of equipment was $5,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $53,000.)

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