Explain the meaning of operating cash flow
What will be an ideal response?
Operating cash flow is funds from operations reduced by changes in the investment in working capital (current assets minus current liabilities). If a company has undergone a change in working capital for the period being considered, the operating cash flow will give a better picture of the cash generated by the company's operations.
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Westmoreland Company Following are selected data from Westmoreland Company's financial statements. 2017 2016 Current liabilities $230,000 $160,000 Long-term debt 120,000 320,000 Stockholders' equity 420,000 540,000 Cash payments for additions to plant and equipment 45,000 32,000 Net cash flow from operating activities 80,000 51,000 Interest and principal payments 12,000 8,000 Net operating cash
flows before interest and taxes 68,000 43,000 Net income 90,000 72,000 Interest expense 8,500 11,500 Income taxes 16,000 14,500 Dividends paid 15,000 30,000 Refer to the Westmoreland Company data. The company's debt service coverage ratio for 2017 indicates that the a. company's ability to pay principal and interest to creditors has declined. b. company has more net income available to allocate to stockholders after the payment of debt. c. company had significantly changes in current assets and current liabilities during the period. d. company generates about $2 of cash from operations to cover every $1 of debt.
According to the text, the governmental database is a major type of computerized database
Indicate whether the statement is true or false
Respondents with unsatisfactory responses may be simply discarded when the proportion of unsatisfactory respondents is ________
A) less than 10 percent B) 10 percent to 20 percent C) 21 percent to 30 percent D) 31 percent to 40 percent E) more than 41 percent
Which of the following represents the types of data commonly found in the finance department?
A. Production data B. Employee data C. Technology data D. Monetary data