For each of the following scenarios,determine if it is an indicator of potential cash flow problems:
a. Growth in accounts receivable or inventories that is less the growth rate in sales.
b. Increases in accounts payable that exceed the increase in inventories.
c. Capital expenditures that substantially exceed cash flow from operations.
d. Sales of marketable securities are less than purchases of marketable securities.
e. Other operating current liabilities that grow at a lesser rate than sales.
f. A reduction or elimination of dividend payments
g. A substantial shift from long-term borrowing to shortterm borrowing.
Correct Answer:
Verified
Q41: When the excess of ROA over the
Q62: A.What are the three measures that are
Q63: The main ratio used by many financial
Q68: Falcon Corporation has current assets of $400,000
Q69: Hammer Corporation wrote off $185,000 of obsolete
Q70: Given the following information,calculate for Year 2
Q70: In the empirical research on earnings manipulation
Q70: One criticism of the interest and fixed
Q78: Bankruptcy analysis research has gone through many
Q80: When a financial analyst examines the credit
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents