What impact will the following actions have on the firm's cash balance? a. The firm sells some
Question:
a. The firm sells some goods from inventory.
b. The firm sells some machinery to a bank and leases it back for a period of 20 years.
c. The firm buys back 1 million shares of stock from existing shareholders?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (9 reviews)
a Cash will increase as one current asset inventory is exchan...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0078034640
7th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
Question Posted:
Students also viewed these Corporate Finance questions
-
A firm currently offers terms of sale of 3/20, net 40. What effect will the following actions have on the implicit interest rate charged to customers that pass up the cash discount? State whether the...
-
Current Ratio What effect would the following actions have on a firms current ratio assume that net working capital is positive. a. Inventory is purchased. b. A supplier is paid. c. A short-term bank...
-
What impact would the following actions have on the operating and cash conversion cycle s? Would the cycles increase, decrease, or remain unchanged? a. More raw material than usual is purchased. b....
-
A business student has $3,500 available from a summer job and has identified three potential stocks in which to invest. The cost per share and expected return over the next two years are given in the...
-
Using the income statement and balance sheet presented here, compute the following ratios. Compare your results with the industry averages. What strengths and weaknesses are apparent? Ratio Industry...
-
Suppose 1.00 mol of oxygen is heated at constant pressure of 1.00 atm from 10.0C to 25.0C. (a) How much heat is absorbed by the gas? (b) Using the ideal gas law, calculate the change of volume of the...
-
Use the information for Hamlet House in Exercise E9-15 and assume a tax rate for the company of 35 percent. a. If Hamlet House wants to earn an after-tax profit of \(\$ 182,000\), how many garden...
-
Mary is 30 years old and married to Mark, age 36. Mark passed away on January 30, 2021. Mark was unemployed and had no income in 2021 due to his illness. Marys seven-year-old daughter, Jenny, lived...
-
Sunland Corporation is a private company with a defined benefit pension plan. The following information is available for Sunland for 2023: Opening balance, DBO Opening balance, plan assets $188,000...
-
Myles Houck holds 600 shares of Lubbock Gas and Light. He bought the stock several years ago at $48.50, and the shares are now trading at $75. Myles is concerned that the market is beginning to...
-
Reconsider the data in Practice Problem 13 which imply that you have $100,000 of total pretax income to allocate between your salary and your firm's profits. What allocation will minimize the total...
-
Here are simplified financial statements of Phone Corporation from a recent year: INCOME STATEMENT (Figures in millions of dollars) Net sales Cost of goods sold Other e Depreciation Earnings before...
-
a. What is behavioral finance? b. What three conditions must be absent for a market to be inefficient?
-
The Birgini Company buys one unit of inventory for $ 7 7 in cash. This item is later sold for $ 1 0 9 on credit. What journal entry or entries are made at the time of sale if a periodic inventory...
-
A company has a $36 million portfolio with a beta of 1.2. The futures price for a contract on an index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to...
-
1. Write the following sets using set builder notation: (a) The natural numbers greater than 40. (b) The real numbers between -4.44 and 2 (inclusive). (c) {1, 2, 3, 4, ...}. (d) The integers that end...
-
Adjustments 1. Physical stock taking showed inventory valued at R180 000 as at 31 December 2017 2. Depreciation must be provided for as follows Motor vehicles: 20% per annum on the cost price ...
-
Consider the growth model. Suppose that an economy is hit by a natural disaster destroying a large amount of the capital stock. What changes do you expect to happen in this economy? What are the...
-
Are the following matrices symmetric, skew-symmetric, or orthogonal? Find the spectrum of each, there by illustrating Theorems 1 and 5. Show your work in detail.
-
What is an access control list?
-
Can cash flow from operations be positive if net income is negative? Can it be negative if net income is positive? Give examples.
-
During the last year of operations, Theta's accounts receivable increased by $10,000, accounts payable increased by $5,000, and inventories decreased by $2,000. What is the total impact of these...
-
Balance sheet items are usually entered in order of declining liquidity. Place each of the terms below in the appropriate place in the balance sheet. Accounts payable ........................Total...
-
1)A stock sells for $40. The next dividend will be $4 per share. If the rate of return earned on reinvested funds is 15 percent and the company reinvests 40 percent of earnings in the firm, what must...
-
Perpetrators will commit the same scheme or a similar fraud scenario many times
-
How much should you pay for a 10 lot subdivision if you require a 19% rate of return, no lots will be sold the first 3 years, and then you will sell one lot every 6 months until the lots are sold...
Study smarter with the SolutionInn App