How is it possible for a company to suffer a net loss for a given year, yet produce a positive net cash flow from operating activities?
A net loss means that accrual-based expenses exceeded accrual-based revenues for the period. However, if you eliminate the effect of (add back) such noncash expenses as depreciation and amortization, it is possible to have produced a positive net cash flow from operations. Increasing payables (not paying all expenses incurred this period) and decreasing receivables (collecting more receivables than sales) this period would also cause cash flow to be higher than related net income or loss.
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Similar to stock and commodity exchanges, the foreign exchange market is an organized structure with a central meeting place and formal licensing requirements.
a. True b. False
Which of the following is NOT one of the more commonly used options for cutting project costs?
A. Have owner take more responsibility B. Move the completion date further out C. Outsource project activities D. Brainstorm cost savings options E. Reduce project scope
Of the five core customer segments in the market for environmentally and socially responsible products, members of which group are MOST likely to be active in environmental causes?
A) LOHAS B) Naturalites C) Drifters D) Conventionals E) Unconcerned
The normal selling price of Daniel Company's product is $35 per unit. The costs of production are: direct materials, $6; direct labor, $5; variable overhead, $5; and fixed overhead, $6 (based on normal capacity). The company has received a special order for 12,800 units at a unit sales price of $19. There is ample unused capacity to fill the order and $2 per unit will be incurred for additional
packaging. If the order is accepted, operating income will A) increase by $12,800. B) decrease by $38,400. C) increase by $38,400. D) decrease by $12,800.