The focus on traditional financial statements is -Select- data rather than cash flow. However, cash flow is important to investors, managers, and stock analysts. Therefore, corporate decision makers and security analysts need to modify accounting data provided to them. An important modification is the concept of free cash flow (FCF). Many analysts regard FCF as being the single and most important number that can be developed from the accounting statements, even more important than net income. The equation for free cash flow is:

Answers

Answer 1

Answer:

The focus on traditional financial statements is ACCOUNTING data rather than cash flow.

Free cash flows = (EBIT x (1 - tax rate)] + non-cash expenses (depreciation and amortization) - capital expenditures - increases in net working capital

Explanation:

Cash is KING. A company might b extremely profitable from an accounting point of view, but if it doesn't have enough cash to keep running, it will go bankrupt. E.g. many companies increase their sales revenue by handing out long credit terms to most or all of its customers including some that may not be able to pay them back. That increases accounts receivables and net income, but until the cash is collected, this is useless. The other option that a company has is to factor their accounts receivables but factoring companies are not dumb and they will pay a very low amount for them.

Companies and stocks are always valued based on cash flows, never on accounting records. Accounting records might be deceiving, but cash never lies. Either the company has or doesn't have cash. A company's cash flow tells investors how well managed a company is.

E.g. Remember that during the Great Recession both GM and Chrysler went bankrupt and the government had to bail them out. If you looked at their accounting records of the previous year, they were both profitable, so why did they burst in just a few months? They didn't have cash. Cars and SUVs are useless unless you sell them and collect the cash. Ford didn't go bankrupt because it had billions of dollars in cash, not because they were doing great. Ford was actually the company that performed worst form an accounting point of view. But out of the 3 car companies, it was the only one properly managed. Accounting records are great for the IRS but are meaningless to an investor.


Related Questions

Dr. Peabody recorded $6,820 in services provided to clients who make monthly payments. Which of the following statements is correct?
A. The dental revenues account is debited $6,820; accounts receivable is credited $6,820.
B. Accounts receivable is credited $6,820; the dental revenues account is credited $6,820.
C. Accounts receivable is debited $6,820; the dental revenues account is debited $6,820.
D. Accounts receivable is debited $6,820; the dental revenues account is credited $6,820.

Answers

Answer:

D. Accounts receivable is debited $6,820; the dental revenues account is credited $6,820.

Explanation:

The two accounts that are affected here are accounts receivables ( Assets) and the revenue account ( affects capital). The accounts receivable will increase as payment is expected at the end month. Since receivable are assets, an increase in receives is recorded as a debit of the account receivable account. $ 6,820 will be debited on the accounts receivables.

The services rendered increases the revenue to Dr. Peabody.  Revenue is considered a capital account because it increases the owner's equity. An increase in a capital account is credited. Dr. Peabody will credit the dental revenue account with $6,820.

Dr. Peabody contributed $5,000 in cash to the company. Which of the following statements is correct?
A. Cash is debited $5,000; capital is credited $500.
B. Capital is debited $5,000; cash is credited $5,000.
C. Cash is credited $5,000; capital is credited $5,000.
D. Cash is debited $5,000; capital is credited $5,000.

Answers

Answer:

D. Cash is debited $5,000; capital is credited $5,000.

Explanation:

The action by Mr. Peabody will increase both cash and capital accounts by $5000 each. As per the accounting equation,( Assets = owners equity + liabilities) cash and capital are on the opposites sides.  Cash is an asset, while capital is equity.

An increase in an asset is a debit, while an increase in capital is credited. In this case, the cash account will be debited by $5000, while the same amount will credit the capital account.

Yeah
Aye' Lewis wassup?
Billy Bang
It's the chemists yall'
My love, do you ever dream of
Have you ever loved someone
So much you'd thought you'd die
Giving so much of yourself it seems the only way
Tell me what you want and now
And I will give it to you (You yeah)
'Cause you are my love do you ever dream of
Candy coated rain drops?
You're the same my candy rain
My love did you ever dream (Dream)
That it could be so right?
I never thought I would find
All that I need in life
All I want all I need now I know
I know I found it in you
'Cause you are my love do you ever dream of
Candy coated rain drops?
You're the same my candy rain
Billy Bang
Mommy call me bang bang like a gun
I make her candy rain let it rain on my tongue
Tell her don't stop get it get it, gimmie gimmie some
Baby don't stop get it get it til we get it done

Answers

Answer:

?????????????????????

Answer:

/: ??????????????

Explanation:

How can avoiding speeding tickets affect an automobile insurance policy?
O It can make it hard to file a claim.
O It can help keep premiums down.
O It can raise the price of premiums.
O It can make it difficult to share risk.

Answers

it can help keeps premiums down.

The avoidance of speeding tickets can affect an automobile insurance policy as It can help keep premiums down.

What is speeding ticket?

The term speeding ticket is known to be a form of ticket that is written as a  piece of paper that is said to be given only by a police officer to a person who was fount to be driving too fast and that tells the given amount of  fine that the driver will pay.

Note that when there is low rate or an avoidance of speeding tickets, it can influence an automobile insurance policy as It can bring about a reduction in premiums.

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How can diversity in the workplace make a company more competitive in a global market?
O Diversity inhibits critical thinking and prevents disagreement among team members about global business
strategies.
O Diversity minimizes group think and can bring new ideas, attitudes, and experiences to the development of global
products and services.
O Diversity promotes global domination of the marketplace.
O Diversity is a moral virtue, and morals are consistent worldwide.

Answers

Answer:

Diversity inhibits critical thinking and prevents disagreement among team members about global business strategies.

Explanation:

Diversity in the workplace increases the competitiveness of the company as it focuses on generating new ideas and developing the goods or services provided globally.

Option B is the correct answer.

What is diversity in the workplace?

Diversity is the situation where there are diverse or varied resources present in the workplace.

The companies get a competitive advantage due to the diversity in the workplace. It resulted in the emergence of innovative ideas from the working employees which ultimately lead to the development of products or services provided worldwide.

Therefore, the initiation of new ideas developing the global products which provide competitiveness to the company.

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3. Describe through the use of T accounts the birth & growth of the Wahoo Bank

Answers

Answer:

Describe through the use of T accounts the birth & growth of the Wahoo Bank is explained below in detailed explanation.

Explanation:

Equipoise T-accounts is one of the more complex and mind gobbling something for many accounting scholars. In this lesson, we're going to discover specifically how to balance a T-account. Surely, by the time you've completed this exercise, this action will be more relaxed for you than ever since. The last portion of the T-account that we require to meet is its amount. An account’s amount is the value of that object at a precise point in time.

In a T-account, we determine the balance of the matter at the origin of the term (month or year) and the conclusion of the period.

What is the distinguishing feature of a market structure with monopolistic competition?

A) product reliability
C) product differentiation
B) lower product prices
D) government-approved products

Answers

Answer:

look below

Explanation:

Monopolistic competition is a market structure defined by four main characteristics: large numbers of buyers and sellers; perfect information; low entry and exit barriers; similar but differentiated goods.

Would be much appreictaed if you could lookat my recent question posted and see if you could be of any help:)

disadvantages of tabular representation of data in economics​

Answers

Answer:

There are not many disadvantages in the tabular presentation of data, but one of the disadvantages of this presentation of data is that it does not provide a detailed view of the data which is provided with the textual presentation.

Explanation:

Tabular presentations could also have a few problems related to mobile use:

There is not enough space to put all the columns on the screen, so it has to be moved manually, which is not economic.If the columns are shrunk, it will minimize the letters, so it won’t be legible.It will slow down the mobile phone.

Identify the correct way to cite the O*NET "Video Game Designers" web page.


1. Details Report for: 15-1199.11 – Video Game Designers. O*NET OnLine. n.p., 2012. Web. 1 May 2013.

2. “Details Report for: 15-1199.11 – Video Game Designers.” O*NET OnLine. n.p., 2012. Web. 1 May 2013.

3. O*NET OnLine. “Details Report for: 15-1199.11 – Video Game Designers.” n.p., 2012. Web. 1 May 2013.

4. “O*NET OnLine.” Details Report for: 15-1199.11 – Video Game Designers. n.p., 2012. Web. 1 May 2013.


Second Option is Correct!

Answers

Answer:

B. “Details Report for: 15-1199.11 – Video Game Designers.” O*NET OnLine. n.p., 2012. Web. 1 May 2013

Explanation:

EDGE2022

2Details Report for: 15-1199.11 – Video Game Designers.” O*NET OnLine. n.p., 2012. Web. 1 May 2013 is the correct way to cite the O*NET "Video Game Designers" web page.

What is video game designer?

A video game designer envisions practically all aspects of a game, including stories, characters, visual designs, and layouts. Designers collaborate with several teams to develop a unified vision.

Thus, option B is correct.

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Regular salary: $984 per month

Overtime rate: $10.39 per hour (14 hours overtime to be paid)

Round your answers to two decimal places.

gross pay: $

Answers

Answer:

$1,129.46

Explanation:

Gross pay is the total of basic salary plus any other payments such as bonuses, commissions, and overtime.

In the case,

salary = $984

overtime = $10.39 per hour  x 14 hours

=$145.46

Gross pay =  $984 + $145.46

=$1,129.46

A container when 3/8 full,holds 15 litres of oil.How many litres of oil would be needed to fill 5 similar containers?​

Answers

Answer:

200 litres of oil

Explanation:

When the container is 3/8 full, its holds 15 litres of oil.

i.e. 3/8 = 15 litres

the container need 8/8 or 1 to be full.

If 3/8 = 15 litres. or 0.375 = 15 litres

full container will be 15/0.375 x 1

=40 litres

To fill 5 such containers will requires

=40 litres x  5

=200 litres of oil

Answer:

I want brainliest lol

Explanation:

Imagine you want to become a chef and restaurant owner. What education and
skills would you need to succeed in this position?

Answers

Business, Culinary/food handling permit.

Answer:

Cooking and business managing skills

Explanation:

To be a chef you need to know how to cook, not just following recipes, but being able to cook food that uses the ingredients and measurements you think it need.

To own a restaurant you need to know how to budget money, what you need to buy, how to be able to pay for a restaurant, how to manage it, how to hire staff and pay your staff.

what does the fox say​

Answers

Answer:nenenesnene

Explanation:

Answer:

"Ring-ding-ding-ding-dingeringeding!

Gering-ding-ding-ding-dingeringeding!

Gering-ding-ding-ding-dingeringeding!"

"Wa-pa-pa-pa-pa-pa-pow!

Wa-pa-pa-pa-pa-pa-pow!

Wa-pa-pa-pa-pa-pa-pow!"

Is cereal soup or no?

Answers

Answer:

no its a candy acid

Explanation:

I need help!!!! Someone please lemme know what I need to do!!!!

Answers

Answer:

Ok so first, you can do by taking to mortgage. ex : 146,800.00 multiply by 30, then you have your answer, then vise versa .. Hope this helped.

Explanation:

!!!!!PLEASE HELP I NEED TO PASS !!!!
Which of the following are meant to store money which is NOT intended for daily expenses?
O Checking accounts
O Savings accounts
O Loan accounts
O Credit accounts

Answers

Umm I’m not quite sure but it gonna have to be Loan accounts

Answer:

You put money in saving accounts and don't usually use it for daily expenses. checking accounts are for daily expenses loans are for investments and credit catds are the banks money so it has to be a savings account

How can part-time or temporary work help you explore career choices?
The three traits an entrepreneur must possess to be successful are _____.
a.
motivation, humility, and decision making
b.
conflict management, motivation, and decision making
c.
sight & foresight, decision making, and motivation
d.
humility, conflict management, and sight & foresight


Please select the best answer from the choices provided


A
B
C
D

Answers

Answer:

d is your answer

Explanation:

Ramon has been appointed the manager of a retail store. He wants to bring the store into the modern era and direct its future by utilizing the latest trends in visual merchandising. What can Ramon do to achieve this?

Answers

Answer:quit school and beco

Explanation:

Answer:

C.  install mannequin robots to display clothes

Explanation:

Among the offered answers, a truly avantgarde, modern approach is to implement robot mannequins in the store. With this tactic, customers would be incentivized to approach this innovative customer journey. Through pioneering this technique, Ramon's company would get a competitive advantage through visual merchandising.

A man walks around a circular park 4 times in 12 minutes. The radius of the park is 49m. Find the speed of the man in km/h.​

Answers

Suge the reason its suge is because this dababys hit song which landed up on baby on baby album. Remember blame it on baby BOP Suge ROCKSTAR.

What is a manufacturer’s goal when using specialization?

Answers

Answer:

. -Specialization leads to efficient use of resources including land, labor, and capital ..Ex: A shirt manufacturer realizes that striped shirts are a hot topic.

Explanation:

there goals is to provide growth in the economy.

There is no gain in mechanical advantage in a single fixed pulley . explain why the pulley is then used​.

Answers

Explanation:

A single fixed pulley is used only to change the direction of the force applied that is with its use, the effort can be applied in a more conveninent direction. To raise a load directly upwards is difficult.

4. List and explain the reserve requirements for banks in 2019 for checking accounts and savings accounts.

Answers

Answer:

love the points

Explanation:

HELP!

While drilling metal, Ben poured oil over the area. Which best explains why he did this?


Ben was trying to reduce fluid friction.

Ben was trying to reduce kinetic friction.

Ben was trying to increase fluid friction.

Ben was trying to increase kinetic friction.

Answers

Answer:

B. Ben was trying to reduce kinetic friction

Hope it works!

Explanation:

While drilling metal, Ben poured oil over the area, and Ben was trying to reduce kinetic friction. Therefore option B is correct.

What is Kinetic friction?

The kinetic friction force, also known as sliding friction, only affects moving objects (thus the term "kinetic"). Pushing a box across floorboards is an example of this force opposing sliding motion. This sort of friction has a particular coefficient of friction (such as rolling friction).

Static friction, which is the resistance to motion brought on by the friction between a motionless item and a surface, is the other main type of friction that occurs between solids. The force of friction is weaker for items that are already moving because the coefficient of static friction is often greater than the coefficient of kinetic friction.

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*ECONOMICS* Which situation best illustrates the concept of absolute advantage?
O A. A factory in Vietnam can produce more shoes than other
countries.
O B. The total value of U.S. exports is lower than the value of the
country's imports.
O C. A software company is forced to increase its prices to pay for
rising labor costs.
D. A restaurant buys its ingredients from nearby farms to help the
local economy.

Answers

Answer:

O A. A factory in Vietnam can produce more shoes than other

countries.

Explanation:

Absolute advantage is the capability of a commercial entity to produce goods using fewer resources compared to rivals. Using the same inputs, an entity with an absolute advantage produces a larger output compared to competitors. It means the firm has a lower marginal cost of production. Therefore, its products will have the lowest prices in the market.  

The factory in Vietnam has an absolute advantage in producing shoes. It is using fewer resources than rivals to manufacture shoes, that why it is producing a higher quantity.

Diseconomies of scale means that a company is too small to purchase in bulk and is unable to lower costs.

True
False

Answers

Answer:

Diseconomies of scale are when production output increases with rising marginal costs. ... Fixed costs do not change with increases/decreases in units of production volume, while variable costs are solely dependent, which results in reduced profitability. They show how well a company utilizes its assets to produce profit.

Explanation:

It's true.

True.
Explanation: It is True.

I need help with this

Answers

Answer:

B. Someone new contributes money to the company, becoming an owner.

Explanation:

Common stocks or shares represent a portion of the company. Ownership of a share means owning a part of the company. Shares are also known as equity.

A company issues common stocks when it wants to raise additional capital. Anyone buying shares is contributing capital to the business. They become owners of the business or shareholders as popularly known. They are issued with share certificates and are entitled to dividends.

What is location analysis

Answers

Answer:

Location analysis is a technique for discovering, assessing and specifying the optimal placement of an organization's people, information, activities, and materials.Location models are key in performing location analysis by providing a well-documented common vision of current and desired location arrangements.

An electronic card that serves as an interface to an ATM is known as a ____.
A. cash card
B. credit caby
C. smart card
D. debit card​

Answers

Answer:

D. debit card​

Explanation:

A debit card is an electronic card that enables customers to access their bank accounts via an ATM.  An ATM ( Automated Teller Machine) is a banking outlet that allows customers to perform basic banking services such as deposits, withdrawals, transfers, and balance inquiries without stepping into the banking hall.

A customer needs to have their debit card and the PIN to access their bank account via the ATM.

Which of the following criteria is important when identifying a potential
mentor?
A. Whether you admire the person
B. The person's passions outside of work
C. How much money the person makes
D. How many mentees the person has had previously
SUBMIT

Answers

Answer: A

Explanation:

Answer:

A. Whether you admire the person

Explanation:

If average household income increases by 10%, from $50,000 to $55,000 per year, the quantity of rooms demanded at the Triple Sevens from rooms per night to rooms per night. Therefore, the income elasticity of demand is , meaning that hotel rooms at the Triple Sevens are . If the price of a room at the Exhilaration were to decrease by 10%, from $250 to $225, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Triple Sevens from rooms per night to rooms per night. Because the cross-price elasticity of demand is , hotel rooms at the Triple Sevens and hotel rooms at the Exhilaration are . Triple Sevens is debating decreasing the price of its rooms to $175 per night. Under the initial demand conditions, you can see that this would cause its total revenue to . Decreasing the price will always have this effect on revenue when Triple Sevens is operating on the portion of its demand curve.

Answers

Answer:

Some numbers are missing, so I looked for similar questions:

If average household income increases by 10%, from $50,000 to $55,000 per year, the quantity of rooms demanded at the Triple Sevens from 300 rooms per night to 350 rooms per night. Therefore, the income elasticity of demand is             , meaning that hotel rooms at the Triple Sevens are      .

income elasticity of demand = % change in quantity demanded / % change in income

income elasticity of demand = 16.7% / 10% = 1.67, since it is positive, then they are normal goods, and since their IED ≥ 1, they can also be considered luxury goods.

If IED is negative, that means that a good is an inferior good, since the more you earn, the less you consume.

If the price of a room at the Exhilaration were to decrease by 10%, from $250 to $225, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Triple Sevens from 300 rooms per night to 200 rooms per night. Because the cross-price elasticity of demand is      , hotel rooms at the Triple Sevens and hotel rooms at the Exhilaration are        .

Cross price elasticity of demand = % change in quantity demanded of Triple Sevens hotel rooms / % change in price of Exhilaration hotel rooms

Cross price elasticity of demand = -33.33 / -10% = 3.33

Triple Sevens hotel and Exhilaration hotel are substitutes since their cross price elasticity is positive.

Triple Sevens is debating decreasing the price of its rooms to $175 per night (from $200). Under the initial demand conditions, you can see that this would cause its total revenue to        . Decreasing the price will always have this effect on revenue when Triple Sevens is operating on the        portion of its demand curve.

original revenue before change in price = $200 x 150 rooms = $30,000

revenue after decreasing price = $175 x (150 x 1.1667) = $175 x 175 rooms = $30,625

total revenues will increase by $625, this happens because Triple Sevens hotel is operating on the elastic portion of the demand curve.

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