100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Summary QuestionWhen a company reports negative net cash flows from operations, which of the fo $7.99
Add to cart

Summary

Summary QuestionWhen a company reports negative net cash flows from operations, which of the fo

 3 views  0 purchase

When a company reports negative net cash flows from operationsQuestionWhen a company reports negative net cash flows from operations, which of the following information is more relevant to help the firm stay proactive? C ratio of equity to annual cash expenses O ratio of equity to monthly cas...

[Show more]

Preview 1 out of 3  pages

  • October 13, 2024
  • 3
  • 2024/2025
  • Summary
  • but on a monthly basis
All documents for this subject (71)
avatar-seller
newage
Question


When a company reports negative net cash flows from operations, which of the

following information is more relevant to help the firm stay proactive? C ratio

of equity to annual cash expenses O ratio of equity to monthly cash expenses O

ratio of cash to monthly cash expenses ratio of accounts payable to annual

financing expenses O all of the above can be used




Answer & Explanation


When a company reports negative net cash flows from operations,

understanding its liquidity and ability to cover expenses is crucial. Let's evaluate

each option:


1. Ratio of equity to annual cash expenses: This ratio helps assess how

long the company can sustain its operations using its equity if it continues

to have negative cash flows.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller newage. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $7.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

56326 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$7.99
  • (0)
Add to cart
Added