Question

T/F Earnings available to common shareholders is equal to a corporation's positive net cash flow over...

T/F Earnings available to common shareholders is equal to a corporation's positive net cash flow over a given period, typically one year.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

False.

Earning's available to common shareholders is determined by profit and loss account or income statement. However, net cash flow is determined by cash flow statement. Two figures, i.e.. net income and net cash flow can be different because of accrual concept of accounting. For ex : Credit Sales is considered as revenue even though cash is yet to be received. Hence, credit sales will increase net income however, cash flow for the period will not be affected as no cash is received yet.

If you have any doubt, ask me in the comment section.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The increase in owners' equity for a given period is equal to A. positive net cash...
The increase in owners' equity for a given period is equal to A. positive net cash flow minus dividends. B. net income minus dividends. C. sales minus dividends. D. gross profit minus distributions to shareholders. 2. A corporation has annual sales of $18 million, total assets of $4 million, a debt ratio of 40%, depreciation expense of $200,000, and a tax rate of 40%. The corporation's total stockholders' equity is equal to A. $5,600,000. B. $2,400,000. C. $1,800,000. D. $2,800,000.
1. For a given time period in a project life, the incremental net cash flow equals...
1. For a given time period in a project life, the incremental net cash flow equals a. changes in cash flows for the period relative to baseline projections for the project b. incremental cash inflows in that period, less incremental cash outflows in that period c. cash flows in the given period relative to cash flows in the preceeding period 2. Net cash flows from a project are residual. what does this term mean? a. the term refers to the...
Is it possible to have a positive net income and negative cash flow from operations? If...
Is it possible to have a positive net income and negative cash flow from operations? If your answer is no, explain fully. If your answer is yes, provide two examples when one might find this. Is it possible to have a negative net income and positive cash flow from operations? If your answer is no, explain fully. If your answer is yes, provide two examples when one might find this.
(T / F) Assuming a company has not issued any preferred shares, the return on average...
(T / F) Assuming a company has not issued any preferred shares, the return on average common stockholders' equity equals net income available to common stockholders divided by average common stockholders' equity. Select one: True False (T / F) Paid-in capital is presented in the stockholders' equity section of the balance sheet. Each source of paid-in capital is listed separately. Select one: True False (T / F) Extraordinary items are both usual and interesting in nature. Extraordinary items appear on...
3.1 Project Costing and Cash Flow Modelling For the following project, calculate the undiscounted cash flow....
3.1 Project Costing and Cash Flow Modelling For the following project, calculate the undiscounted cash flow. You can do it in Excel and paste the result below. Year 0 1 2 3 4 5 Unit Price - $105 $110 $115 $120 $125 Units Sold - 900 1000 1100 1200 1300 Net Sales - Variable Costs - $54,000 $60,000 $66,000 $72,000 $78,000 Fixed Costs - $15,000 $15,750 $16,538 $17,364 $18,233 Depreciation - $10,000 $10,000 $10,000 $10,000 $10,000 PBIT - Tax@40% -...
Edit question (T / F) Assuming a company has not issued any preferred shares, the return...
Edit question (T / F) Assuming a company has not issued any preferred shares, the return on average common stockholders' equity equals net income available to common stockholders divided by average common stockholders' equity. Select one: True False (T / F) Paid-in capital is presented in the stockholders' equity section of the balance sheet. Each source of paid-in capital is listed separately. Select one: True False (T / F) Extraordinary items are both usual and interesting in nature. Extraordinary items...
What is the difference between net earnings and free cash flow (meaning compare what information can...
What is the difference between net earnings and free cash flow (meaning compare what information can be assessed from each one and how they are similar and/ or different)? Explain your answer in words.  
FREE CASH FLOW Arlington Corporation's financial statements (dollars and shares are in millions) are provided here....
FREE CASH FLOW Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2016 2015 Assets Cash and equivalents $  14,000 $  11,000 Accounts receivable 25,000 20,000 Inventories 21,520 19,000   Total current assets $ 60,520 $ 50,000 Net plant and equipment 51,000 49,000 Total assets $111,520 $99,000 Liabilities and Equity Accounts payable $ 10,600 $  9,500 Accruals 7,000 5,000 Notes payable 6,900 5,300   Total current liabilities $ 24,500 $ 19,800 Long-term bonds 10,000 10,000...
You can determine a company’s cash situation by analyzing its cash flow statement. The cash flow...
You can determine a company’s cash situation by analyzing its cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets. A firm has $20 million in revenues. Does that mean it has generated a cash flow of $20 million? Yes No The statement of cash flows reports...
Megan Corporation's net income last year was $109,000. Changes in the company's balance sheet accounts for...
Megan Corporation's net income last year was $109,000. Changes in the company's balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Cash and cash equivalents $ (11,800 ) Accounts receivable $ (25,000 ) Inventory $ 8,500 Prepaid expenses $ (14,700 ) Long-term investments $ 91,000 Property, plant, and equipment $ 77,000 Accumulated depreciation $ 80,000 Liability and Equity Accounts: Accounts payable $ 0 Accrued liabilities $ 20,380 Income taxes payable $ (13,080 ) Bonds payable...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT