Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Case Link Question (10) Directions: Click the Worksheet Link above and use the Quick Cash Flow Worksheet to answer this question: What does it mean

image text in transcribed
image text in transcribed
Case Link Question (10) Directions: Click the Worksheet Link above and use the Quick Cash Flow Worksheet to answer this question: What does it mean if a business has negative cash after operating cycle and positive cash available for other debt repayment as shown on the quick cash flow worksheet? The business paid a large dividend. The business sold or otherwise disposed of fixed assets. The business had a very profitable operating cycle. The business had insufficient cash with which to pay current portion of long-term debt. Quick Cash Flow Workshoot Blank Quick Cash Flow (in 8000s) Company Name W US OFA U S Net profit Plus Depreciation, amortization expense Plus (or less) Working investment Equals Cash after operating sale Plus (or less) Oross fixed assets Equals Cosh after capital investment cycle Less Dividends declared Equals Cosh available for a debt repayment Less: Current portion long-term debt (prior year) Equals: Cash available for other debtropayment BEGINNING ENDING Change in working investment Accounts receivable (net) Plus: Inventory Less Accounts payable Less: Accrued expenses Equals Working investment Beginning working investment Less Ending working investment Equals: A Working investment BEGINNING ENDING Change in working investment Accounts receivable (net) Plus: Inventory Less Accounts payable Loss: Accrued expenses Equals: Working investment Beginning working investment Less Ending working investment Equals: A Working investment Change in working investment Accounts receivable (net) Plus Inventory Less Accounts payable Less Accrued expenses Equals Working investment BEGINNING ENDING Beginning working investment Less Ending working investment Equals: A Working investment Are any changes in income taxes payable interest payable, prepaid expenses, Investments, or miscellaneous other accounts large enough to distort quick cash flow

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wiley Federal Government Auditing Laws Regulations Standards Practices And Sarbanes Oxley

Authors: Cornelius E. Tierney, Edward F. Kearney, Roldan Fernandez, Jeffrey W. Green, Kearney & Company

1st Edition

ISBN: 0471740489, 978-0471740483

More Books

Students also viewed these Accounting questions