Explain negative cash flow. How can a profitable firm have negative cash flow?
What will be an ideal response?
One of the major problems that new ventures face is cash flow. On many occasions, profitable firms fail because of lack of cash. Using profit as a measure of success for a new venture may be deceiving if there is a significant negative cash flow. A negative cash flow results when receipt are less than disbursements in any given month. The likelihood of incurring negative cash flows is very high for any new venture, but the amount and length of time before cash flows become positive will vary, depending on the nature of the business.
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Fabrick Company's quality cost report is to be based on the following data: Lost sales due to poor quality$19,300?Quality data gathering, analysis, and reporting$70,100?Net cost of spoilage$62,200?Re-entering data because of keying errors$24,200?Test and inspection of in-process goods$12,300?Final product testing and inspection$42,600?Statistical process control activities$45,700?Returns arising from quality problems$34,900?Downtime caused by quality problems$65,300?What would be the total internal failure cost appearing on the quality cost report?
A. $96,900 B. $43,500 C. $100,200 D. $151,700
Which of the following represents a valid Regulation A Tier 1 offering?
a. Selling $3 million of securities in any 12-month period with a $250,000 individual investor limit b. Selling $10 million in securities in any 12-month period; investors can't buy more than 10% of their annual income or net worth c. Selling $4 million of securities in any 12-month period with no individual investor limit d. Selling $20 million in securities in any 12-month period; investors can't buy more than 5% of their annual income or net worth
Max, an inventory control specialist, has most likely broken through an unwritten boundary when he
A) attends the company picnic in jeans and a tank top. B) invites the CEO to visit his cubicle and discuss company goals. C) invites another inventory control specialist to dinner. D) sends the tech center a request for help.
__________________ has redefined the notion of transparency for corporations.
a. Recent regulations b. Watch-dog groups c. Internet access d. Corporate codes of ethics