The example of source of cash Introduction: The resource that is readily obtainable for utilization is cash , and cash equivalents include all the resources. The net amount of cash and its equivalent that moves in and out of a business is called cash flow . The cash flow of a company can be positive or negative and it is based on the increasing and decreasing nature of the asset.
The example of source of cash Introduction: The resource that is readily obtainable for utilization is cash , and cash equivalents include all the resources. The net amount of cash and its equivalent that moves in and out of a business is called cash flow . The cash flow of a company can be positive or negative and it is based on the increasing and decreasing nature of the asset.
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Subfield of finance that covers finance theory, regulation, and corporate governance. The goal of a company's finance team is to reduce a company's risk through various risk management techniques, different types of financing requirements and investments.
Chapter 3, Problem 3.1CTF
Summary Introduction
To discuss: The example of source of cash
Introduction:
The resource that is readily obtainable for utilization is cash, and cash equivalents include all the resources. The net amount of cash and its equivalent that moves in and out of a business is called cash flow. The cash flow of a company can be positive or negative and it is based on the increasing and decreasing nature of the asset.
Expert Solution & Answer
Explanation of Solution
An example of the source of cash:
The activity that brings in cash or cash equivalents is called as the source of cash. The firm gets cash through the investment by owners, borrowings, converting other resources to cash, and management operations. The example for sources of cash is as follows:
Sources of cash in working capital:
Increase in accounts payable
Conclusion
The sources of cash provide a summary of where the capital is from in corporate finance. The source of cash is helpful in situations like restructuring, mergers and acquisition, and recapitalization.
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