Question

1. Define cash flow and what are the important parameters that go into it? 2. Net cash flow before income tax (NCFBIT) and taxable income are the same? (True / False) 3. Taxable income is implemented in your net cash flow as of generating gross revenue (True or false) and why?

Answer 1

W slower collection of receivables: The slowere collection of interenational accounts receivable can strain a Kiem's cash position. Yo avoid this, care must be taken a to select appropriate payment terms for cach forrign Vouyer, and to factor dikely delays into the cash budget If the receivables involved are substantial , the Canadian verclouter whould use ereport credit insura- -nce or excepout veeceivables discounting facilities in order to avoid exccess Misk The factors listed above show how conditions of international trade can undermine a companys vash position. Companies can take measures to reeduce or avoid such risks & but only if they Finow of the risks in advance Cash flow planning is the way for a company to videntify yoossible problems Yand defend itsey against them