Question

Is financial condition more closely related to net income or to cash flow?

Is financial condition more closely related to net income or to cash flow?

Homework Answers

Answer #1

answer:

Clarification to the above answer

  • Net pay implies income short brought about costs.
  • Pay proclamation demonstrates the gainfulness of the organization and higher the net salary does not mean higher liquidity
  • As against to these Total income is the agent income in addition to the net working capital of the organization.
  • agent income reports inflows and outpourings because of ordinary working exercises. Income and net pay proclamations are distinctive as a rule, on the grounds that there is a period hole between archived deals and genuine installments
  • High working Cash stream demonstrate high store stream in to the organization however high net salary does not mean high reserve stream in to the organization
  • So in the short we could state that money related condition all the more firmly identified with to income
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose Stuart Company had the following results related to cash flows for 2019: Net Income of...
Suppose Stuart Company had the following results related to cash flows for 2019: Net Income of $5,800,000 Adjustments from Operating Activities of -$700,000 Net Cash Flow from Investing Activities of -$4,900,000 Net Cash Flow from Financing Activities of $700,000 Create a statement of cash flows with amounts in thousands. What is the Net Cash Flow? Note: Financial results are provided in dollars but the income statement units are thousands of dollars. Please specify your answer in the same units as...
Suppose Lightspeed Industries has the following results related to cash flows for 2019: Net Income of...
Suppose Lightspeed Industries has the following results related to cash flows for 2019: Net Income of $8,800,000 Increase in Accounts Payable of $900,000 Decrease in Accounts Receivable of $300,000 Increase in Inventory of $400,000 Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands. What is the Net Cash Flow from Operating Activities? Note: Financial results are provided in dollars but the income statement units are thousands of dollars. Please...
Suppose Siam Traders has the following results related to cash flows for 2019: Net Income of...
Suppose Siam Traders has the following results related to cash flows for 2019: Net Income of $7,200,000 Increase in Accounts Payable of $600,000 Increase in Accounts Receivable of $100,000 Decrease in Debt of $700,000 Depreciation Expenses of $1,500,000 Purchases of Property, Plant, & Equipment of $8,300,000 Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands. What is the Net Cash Flow? Note: Financial results are provided in dollars but...
Suppose Stuart Company has the following results related to cash flows for 2019: Net Income of...
Suppose Stuart Company has the following results related to cash flows for 2019: Net Income of $7,700,000 Decrease in Accounts Payable of $900,000 Decrease in Accounts Receivable of $300,000 Decrease in Debt of $600,000 Depreciation Expenses of $1,100,000 Purchases of Property, Plant, & Equipment of $7,500,000 Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands. What is the Net Cash Flow? Note: Financial results are provided in dollars but...
Suppose Torche Corporation has the following results related to cash flows for 2019: Net Income of...
Suppose Torche Corporation has the following results related to cash flows for 2019: Net Income of $10,000,000 Increase in Accounts Payable of $800,000 Increase in Accounts Receivable of $600,000 Depreciation of $1,600,000 Decrease in Inventory of $100,000 Other Adjustments from Operating Activities of $1,000,000 Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands. What is the Net Cash Flow from Operating Activities? Note: Financial results are provided in dollars...
Suppose Gulf Shipping Company had the following results related to cash flows for 2018: Net Income...
Suppose Gulf Shipping Company had the following results related to cash flows for 2018: Net Income of $5,300,000 Adjustments from Operating Activities of -$500,000 Net Cash Flow from Investing Activities of -$700,000 Net Cash Flow from Financing Activities of $3,200,000 Create a statement of cash flows with amounts in thousands. What is the Net Cash Flow?
Suppose Siam Traders had the following results related to cash flows for 2017: Net Income of...
Suppose Siam Traders had the following results related to cash flows for 2017: Net Income of $6,300,000 Adjustments from Operating Activities of $1,900,000 Net Cash Flow from Investing Activities of $600,000 Net Cash Flow from Financing Activities of $4,200,000 Create a statement of cash flows with amounts in thousands. What is the Net Cash Flow? Please specify your answer in the same units as the statement of cash flows.
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow...
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $165,200 on its statement of cash flows for the year ended December 31. The following information was reported in the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method: Decrease in income taxes payable$3,100 Decrease in inventories7,700 Depreciation11,900 Gain on sale of investments5,400 Increase in accounts payable2,100 Increase in prepaid expenses1,300 Increase in...
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow...
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $216,900 on its statement of cash flows for the year ended December 31. The following information was reported in the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method: Decrease in income taxes payable $4,800 Decrease in inventories 12,000 Depreciation 18,400 Gain on sale of investments 8,300 Increase in accounts payable 3,300 Increase...
1-When is your cash flow “in the red”? A-Income > Spending B-Spending > Income C-Net cash...
1-When is your cash flow “in the red”? A-Income > Spending B-Spending > Income C-Net cash flow > Income – Spending D-Net cash flow > Spending – Income 2-Define opportunity cost. A-The money it costs to take advantage of an opportunity. B-The cost of an alternative that must be forgone in order to pursue a certain action. C-Payment for an opportunity. D-The cost of purchasing necessities. 3-Which of these is a strategy to spend less and earn more? A-Pay yourself...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT