Forecasting the amount of cash that will be available after paying expenses is straightforward because it's always equal to the firm's "bottom line"-the net profit figure shown on the operating statement.
Answer the following statement true (T) or false (F)
False
A cash flow statement is a financial report that forecasts how much cash will be available after paying expenses. The amount that's available isn't always just the bottom line or net profit figure shown on the firm's operating statement.
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In order to show consumers how well its blenders work and to stimulate sales, Vitamix often sets up temporary booths in stores where they have someone using the blender in a variety of ways. This is an example of
A. point-of-purchase material. B. a demonstration. C. a premium. D. a free sample. E. a merchandise allowance.
Charles Brothers Bakery's sales efforts to local schools emphasizes personal selling without any e-commerce support. If Charles Brothers Bakery is doing things right, we would expect that the situation of selling to schools requires
A. low relationship building and a low degree of consumer product awareness. B. high relationship building and a low degree of standardized information exchange. C. low relationship building and a high degree of standardized information exchange. D. low relationship building and a low degree of standardized information exchange. E. high relationship building and high consumer technology understanding.
Brentia, an East Asian country, exported goods worth $50 million and imported goods worth $5 million in the last fiscal year. It also provided a loan of $25 million to another country. In this scenario, Brentia most likely had a _____ in the last fiscal year.
A. negative balance B. balance of payments decumulation C. trade deficit D. balance of payments surplus
Which of the following statements is CORRECT?
A. The regular payback method recognizes all cash flows over a project's life. B. The discounted payback method recognizes all cash flows over a project's life, and it also adjusts these cash flows to account for the time value of money. C. The regular payback method was, years ago, widely used, but virtually no companies even calculate the payback today. D. The regular payback is useful as an indicator of a project's liquidity because it gives managers an idea of how long it will take to recover the funds invested in a project. E. The regular payback does not consider cash flows beyond the payback year, but the discounted payback overcomes this defect.