For each of the following scenarios,determine if it is an indicator of potential cash flow problems:
Potential future cash
flow problems
Yes/No
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 short-term borrowing.

Question

For each of the following scenarios,determine if it is an indicator of potential cash flow problems:
                                                                                    Potential future cash
                                                                                      flow problems
                                                                                         Yes/No
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 short-term borrowing.

Quizplus · Accepted Answer

The Answer of For each of the following scenarios,determine if it is an indicator of potential cash flow problems:
                                                                                    Potential future cash
                                                                                      flow problems
                                                                                         Yes/No
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 short-term borrowing.

For Each of the Following Scenarios,determine If It Is an Indicator