Firms have some choice as to when they disburse cash. A firm may delay making payments to suppliers, employees, and others during the last several days of an accounting period and then make the cash payments during the early part of the next period. The firm
a. decreases cash flow from financing during the first period but increases cash flow from financing during the second period.
b. increases cash flow from operations during the first period but decreases cash flow from operations during the second period.
c. decreases cash flow from operations during the first period but increases cash flow from operations during the second period.
d. increases cash flow from financing during the first period but decreases cash flow from financing during the second period.
e. increases cash flow from investing during the first period but decreases cash flow from investing during the second period.
B
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During the month of March, Baker's Express purchased 10,000 pounds of flour at $1 per pound. At the end of March, Baker's Express found that it had a favorable materials price variance of $500. The standard cost per pound must be
A) $0.95 B) $1.00 C) $1.05 D) $1.95
You need a down payment of $17,200 in order to purchase your first home 4 years from today. You currently have $14,014 to invest. In order to achieve your goal, what nominal interest rate, compounded continuously, must you earn on this investment? Do not round your intermediate calculations.
A. 5.48% B. 5.12% C. 3.84% D. 4.46% E. 6.20%
When there is an ambiguity in an insurance policy, the provision generally is interpreted against the insurance company
Indicate whether the statement is true or false
The future value of $100 received today and deposited in an account for four years paying semiannual interest of 6 percent is:
A) $450 B) $126 C) $889 D) $134 E) $124