Purchase Solution

Cash Flows

Not what you're looking for?

Ask Custom Question

A dollar of cash equals a dollar of cash equals a dollar of cash. In other words, most of us would be happy with a $5 dollar bill, five $1 dollar bills or 20 quarters, correct? Does this same theory hold true for the cash flow statement? Would a company rather have a dollar of cash flow from operations or a dollar from investing or a dollar from financing?

Purchase this Solution
Solution Summary

The solution explains the difference between the cash flows from operating activities, investing activities and financing activities.

Solution Preview

This theory does not hold for a company. This is so becasue each dollar that comes from the different activites has different charcteristics. Some would be more preferable than the others.

Dollar from Financing - This would be borrowing - either debt ...

Purchase this Solution
Free BrainMass Quizzes
Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

View More Free Quizzes
Related BrainMass Solutions

  • Taussig Technologies is considering two potential projects,

    Cash flows are highly correlated with the cash flows from existing projects.

  • Cash Flows Differences in accepting projects is referred to

    incremental cash flow internal cash flows external cash flows erosion effects financing cash flows The difference between a firms future cash flows if it accepts a project and the firms future cash flows if it does not accept the project is referred

  • Three Major Activities on the Statement of Cash Flows

    The three elements of the statement of cash flows are cash flows from operating activities, cash flows from investing activities and cash flow from financing activities.

  • Linus Corporation

    The drop down menus for "Cash flows from operating activities," "Cash flows from investing activities," and "Cash flows from financing activities," list the following: Building Revenues Cash Paid to Purchase Equipment Cash Paid to Suppliers Cash

  • Govt. accounting-differences in the Statement of Cash Flows

    The sections include cash flows from operating activities, cash flows from noncapital financing activities, cash flows from capital and related financing activities, and cash flows from investing activities.

  • Statement of Cash Flow items

    Cash paid to purchase long-term investments would be reported on the statement of cash flows in a operating activies b financing activiees c investing activies d a seperate schedule 5. on the statement of cash flows, the cash flows from financing

  • Annual Before Tax Cash Flow

    The PV of the cash flows is equal to $10,000. We can write: Cash Flows X PVIFA (15%,10) = 10,000 The PVIFA factor for 15% and 10 years is 5.019 Annual cash flows = 10,000/5.019 = $1,992.43 These are after tax cash flows.

  • Classified Stock and Preferred Stock

    The definition of "normal" cash flows is that the cash flow stream has one or more negative cash flows followed by a stream of positive cash flows and then one negative cash flow at the end of the project's life. e.

  • Cash Flows for Explosion of Popularity

    Please list five initial outlay cash flows, three variable operating cash flows, three fixed operating cash flows, and three disposition cash flows. Dear Student, Thank you for using BM. Below are my answers.

  • Apple and Samsung Statement of Cash Flow Comparison

    Profits, when settled in cash, will generate cash flows, even if the timing is off by a month or two. So, cash flows is less predictive than the income statement.

View More Related Solutions