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    Relationship between net cash flow and net income

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    Describe the general relationship between net income and net cash flows from
    operating activities for the firm.
    Has the buildup in plant and equipment been financed in a satisfactory manner? Briefly discuss.
    PG 51-53 Questions 28 & 29

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    Dear student,

    Describe the general relationship between net income and net cash flows from
    operating activities for the firm.
    PG 51-53 Questions 28 & 29

    Net income is the difference between the Revenue and the expenses incurred by the company.
    Net income=Sales-cost of goods sold-operating expenses - interest
    Net income is computed on the basis of accrual system of accounting. That is the income will be accounted for once it is earned and it does not take into account whether the income is actually ...

    Solution Summary

    The solution contains answers for two questions:1.The relationship between the net income and net cash flow from operations and 2.Reviewing the financing of Plant and Machinery

    $2.19