--%>

cash flows from operating activities

A financial analysis tools that measures the need for financing. The formula is the cash-flow from operating activities divided by the cash paid for long-term asset. Cash paid for long-term assets can be found on the statement of cash-flow, in the investing-activities section. A low ratio indicates a need of additional financing for more growth. A high ratio indi- cates that cash-flows are adequate, but it can also be suggested that opportunities for growth are limited.

   Related Questions in Financial Accounting

  • Q : Factors influencing real estate market

    What are the factors which influences real estate market?

  • Q : Vernon’s product life-cycle theory of

    Discuss the Vernon’s product life-cycle theory of the FDI. Specify the strength and weakness of theory?

  • Q : Evaluated Receipt Settlement What do

    What do you mean by Evaluated Receipt Settlement?

  • Q : Benchmarking A way to improve

    A way to improve performance that investigates the way several different entities do the same activity and finds the best way to accomplish the activity. The best ways then become the standard or the benchmark for all the entities.

  • Q : What do you mean by the term Entry What

    What do you mean by the term Entry in Accountancy?

  • Q : Essential condition for

    Specify the essential condition for the fixed-for-floating interest rate swap to be possible?

  • Q : Deposit-loan rate spread in Eurodollar

    Explain, how does deposit-loan rate spread within the Eurodollar market as compared to the deposit-loan rate spread in domestic U.S. banking system and why?

  • Q : Non-tradable asset Assume there is

    Assume there is non-tradable asset along with the perfect positive correlation with a portfolio T of the tradable assets.  How will non-tradable asset be priced?

  • Q : Calculate the PV You expect the price

    You expect the price of the stock 3 years from now to be $119.04 (i.e., you expect P ˆ   3  ?? = $119.04). Discounted at a 10% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $119.04.&nb

  • Q : Calculate depreciation expense for the

    On December 31, 20x3, the PPE Company purchased an asset costing $1,000,000. The asset’s useful life is expected to be 10 years with a residual value of $300,000. a. Calculate the depreciation expense for 20x4 using: