Answered: In cash flow statement, increase in…

In cash flow statement, increase in current asset [A] increases cash [B] decreases cash [C] increases working capital [D] decreases working capital

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk

Section: Chapter Questions

Problem 4MC

See similar textbooks

Related questions

Q: Net profit B) Decrease in non-cash current assets NS) Increase in long-term resources D)…

A: Cash flow statement show the position of cash money of the company.

Q: Which of the following questions is not addressed by the statement of cash flows? Multiple Choice O…

A: Cash Flow Statement: A cash flow statement is a kind of financial statement that offers aggregate…

Q: Cash flow analysis Which statements are correct? Select one or more options: a- A new share issue…

A: Cash flows means cash inflows and cash outflows in the business. It can be from operating…

Q: Which of the following is the amount of cash remaining after a company has covered its operating…

A: Cash flows are majorly divided into 3 types: - Operating cash flows - Investing cash flows -…

Q: Discuss the effect on Free Cash Flow in each of the following situations. Assume that all other…

A: Discuss the effect on Free Cash Flow in each of the following situations. Assume that all other…

Q: Cash outflows generated by capital investments include all of the following except:…

A: Cash flow generated by capital investment includes that is cash flow generated by all activities.

Q: Define each of the following terms:f. Accounting profit; net cash flow; NOPAT; free cash flow;…

A: Accounting profit is the net profit of a firm after deducting a company’s revenue from its expenses.…

Q: When calculating an i* value, all net positive cash flows are assumed to be reinvested at:a. the…

A: Cost of Capital: For financing operations, a firm can raise long term funds through a combination of…

Q: n a construction cash flow statement which of the following working capital account represents a…

A: Answer

Q: A firm's net investment is: a. its enterprise value in excess of debt owed. O b. the market value of…

A: Solution-Company's net investmentThe total amount invested on capital assets minus the price of…

Q: When preparing the operating section of the statement of cash flows. using the indirect method…

A: Under indirect method of statement of cash flows, change in current assets and current liabilities…

Q: Find the net increase or decrease in cash for the year. (Input the amount as positive value.)

A: A Cash Flow Statement is a financial statement which shows net cash inflow and net cash outflow for…

Q: Which one of the following will decrease the cash flow from assets, all else equal? Select one: O a.…

A: Cash flows refer to an activity in which there is a movement of money in the business and out of…

Q: Which one of them will lead to increase in CFFA (cash flow from assets), other things staying…

A: Cash flow from assets is the sum total of cash flows generated from the business assets. It…

Q: 1. Which of the following is a source of cash flows? A) increase in marketable securities C)…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: According to the statement of cash flows, an increase in accounts payable will the cash flow from…

A: A Cash Flow Statement is a financial statement that shows the cash inflow and outflow, properly…

Q: A high capital gearing ratio indicates [A] under capitalization [B] over capitalization [C]…

A: Capital gearing Ratio is the term which means the amount of debt the company has relative to its…

Q: While calc

A: Free cash flow is usually generated from its business operations after minus the capital expenditure…

Q: some examples for these conditions؟ Purchase and sale of assets Increase or decrease in cash & cash…

A: The accounting equation justifies the rules and nature of accounting means the double entry…

Q: true or false The first step in preparing the statement of cash flows is to determine the change…

A: Steps Include in preparation of cash flow statement; 1St Step= Preparation of cash flow from…

Q: Which of the following is considered a part of cash flow from a financing activity in a statement of…

A: Cashflow statement is the financial statement that reflects a firm's cash inflow and cash outflow…

Q: Which of the following statements is CORRECT? O Free cash flow (FCF) is defined as follows: FCF…

A: The answer along with the reasons for incorrect options are provided below.

Q: The owner's equity is computed as follows: Cash inflows less cash outflows Revenues less expenses…

A: Revenue: Revenue or Sales revenue is the amount earned by the company by selling the goods or…

Q: Calculating Cash Flow From Assets by = Operating Cash Flow (OCF) – Net Capital Spending (NCS) -…

A: Calculating Cash Flow From Assets by= Operating Cash Flow (OCF) – Net Capital Spending (NCS) -…

Q: Which

Q: Using the given above, compute for the net cash flow generated by/used in a) Operating Activities…

A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises…

Q: cash generated from operations usually larger than net profit

A: Cash generated from operations is the amount of cash received in respect of operating activities.

Q: Which of the following is considered a use of cash in a cash flow statement? Increase in accrued…

A: Cashflow statement is the financial statement which shows cash inflows and cash outflow activities…

Q: one of the following will decrease net working capital? Select one: a. A decrease in…

A: The gap between a firm's current assets and current liabilities, such as cash, accounts…

Q: Free cash flow provides an indication of a company’s ability to: Generate a net income Generate cash…

A: The amount of cash that remains after deducting funds required for current or continuing operations,…

Q: Which activity decreases cash? Increasing current liabilities Decreasing fixed assets Increasing…

A: This question has 4 options and we need to select the correct option regarding cash.

Q: What causes this decline in ordinary share capital? and what are the consequences for cash flow?

A: Ordinary share capital is the capital contributed by owners based on the shares issued by company.…

Q: If a company reports positive net income for the year, can it also show a net cash outflow from…

A: The question is related to Cash Flow Statement. There are three activities in cash flow statement…

Q: Net working capital increases when inventory is purchased with cash. False or True

A: The net working capital is the excess of current assets over the current liabilities of the company.…

Q: In the Statement of Cash Flows how is cash spent for production is computed ? a) Cost of goods sold…

A: A statement of cash flow indicates data regarding all cash inflows and outflows a firm receives or…

Q: Find all of these from photo: A) operating cash flow B) net capital spending C) net change in…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Compute for the: a. net cash flow from operating activities b. net increase (decrease in cash)

A: Cash flow statement is the statement which shows all cash inflows and cash outflows of business…

Q: 6. Cash from operation is equal to : (a) Net Profit + Increase in Current Assets (b) Net Profit +…

A: Cash from operation represents the cash inflow of the company due to the operations of the company.…

Q: ...is the after tax cash flow generated by a business minus the cost of the capital it has deployed…

A: 1. NPV is the difference between the discounted cash inflow over the years and the initial…

Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

In cash flow statement, increase in current asset

[A] increases cash
[B] decreases cash
[C] increases working capital
[D] decreases working capital

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Determining the future value of one or more present day cash flows is known as ________. A. disinvesting B. annuitizing C. discounting D. compounding
The net present value of an investment represents the difference between the: present value of cash inflows and present value of cash outflows. cost and its net profit. cash flows and future value of profits. cost and net income.
The internal rate of return (IRR) is The same thing as the cost of capital. The discount rate that equates the present values of cash inflows and cash outflows. The same thing as the net present value. The same thing as the profitability index.
The operating cash flow is? The capital spending is? The change in net working capital is? The cash flow from assets is?
Which activity decreases cash? Increasing current liabilities Decreasing fixed assets Increasing long-term debt Decreasing equity
When calculating an i* value, all net positive cash flows are assumed to be reinvested at:a. the current market interest rate.b. the i* rate.c. the company’s MARR.d. the company’s cost of capital.
The discounted payback method discounts cash flows at the opportunity cost of capital and then calculates the payback period. TRUE/FALSE?
The ____ of an investment is the period of time for the ____ to equal the initial cash outlay. a. profitability index; present value of the cash inflows b. payback period; cumulative cash inflows c. payback period; present value of the cash inflows d. None of these are correct
The present value of an investment's future cash flows divided by its initial cost is the: O Net present value. O Internal rate of return. O Average accounting return. O Profitability index. O Payback period.
Define “incremental cash flow.”
1. _______________ is the process of determining the future value (FV) of a cash flow or a series of cash flows, while _________________ is the process of finding the present value (PV) of a future cash flow or series of cash flows. A. Calculating, accounting. B. Discounting, compounding. C. Compounding, forwarding. D. Compounding, discounting.
Please calculate investment in net working capital, net cash flows, and present value of net cash flows! Thank you!