100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
FIN3702 Assignment 1 Semester 1 R55,84   Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of South Africa
  4.  
  5. FIN3702 - Working Capital Management

Exam (elaborations)

FIN3702 Assignment 1 Semester 1
 1 view  0 purchase

FIN3702 Assignment 1 Semester 1 1. 3 Textbook reference, 2010 edition: chapter 3, page 95 Textbook reference, 2014 edition: chapter 4, page 108 Operating activities are the functions of a business directly related to providing its goods and/or services to the market. These are the company's co...

[Show more]

Preview 2 out of 9  pages

Document information

  • August 26, 2022
  • 9
  • 2022/2023
  • Exam (elaborations)
  • Questions & answers

Subjects

  • fin3702 assignment 1 semester 1

Written for

All documents for this subject (51)

Seller

avatar-seller
Excellentstudyresources001

Reviews received

Content preview

FIN3702 Assignment 1 Semester 1

, 1. 3

Textbook reference, 2010 edition: chapter 3, page 95

Textbook reference, 2014 edition: chapter 4, page 108

Operating activities are the functions of a business directly related to providing its goods
and/or services to the market. These are the company's core business activities, such as
manufacturing, distributing, marketing, and selling a product or service. Operating
activities will generally provide the majority of a company’s cash flow and largely
determine whether it is profitable. Some common operating activities include cash
receipts from goods sold, payments to employees, taxes, and payments to suppliers.
These activities can be found on a company's financial statements, and in particular the
income statement and cash flow statement.




2. 4

Textbook reference, 2010 edition: chapter 3, page 96
Textbook reference, 2014 edition: chapter 4, page 110

If accounts receivable increased from one year to the next, the implication is that more
people paid on credit during the year, which represents a drain on cash for the company,
as some of the revenues that came in during the year increased the accounts receivable
balance instead of cash.

Conversely, if accounts receivable decreased from one year to the next, the implication
is that those old accounts receivable were collected (i.e., credit sales were eventually
converted into cash sales), representing cash inflow for the company.

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 EFT, 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 this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Excellentstudyresources001. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R55,84. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67474 documents were sold in the last 30 days

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

Start selling
R55,84
  • (0)
  Buy now