what does a negative cash flow to creditors and negative cash flow to shareholders mean, and how does this happen? what does it mean in terms of the company's liquidity?
Negative cash flow to creditors occurs when the company pays lessor amount towards interest and principal and there is increase in borrowings of the company with lessor payment towards interest and principal negative cash flow to creditors occur. When the equity raised by the company is higher than the cash outflow in the form of dividend there is negative cash flow to shareholders. This would impact the liquidity of the company in future as the company will have to pay higher principal and interest and higher dividend in the future which may raise liquidity issue.
what does a negative cash flow to creditors and negative cash flow to shareholders mean, and...
Cash flow to stockholders and creditors: Could a company’s cash flows to stockholders be negative in a given year? (Hint yes) Explain how this might come about. What about cash flow to creditors?
Statement of Cash flow :- 1) What does a Cash flow statement depict? What does it say about the company? ( positive and negative cash flow) 2) Analysis of cash flow statement: How does one know where the company is getting the cash from ? What is the company spending the cash on?
When a company obtains cash from shareholders, returns cash to shareholders, borrows from creditors, and repays amounts borrowed from creditors. a. Activity Classification b. Financing Activities c. Operating Avtivities d. Investing Activities
1. Cash flow to creditors must be negative when: a. net new borrowings exceed the amount of interests paid b. the amount of dividends paid exceeds the net new borrowings. c. dividends payment exceed the interests payments. d. both the cash flow from assets and the cash flow to shareholders are negative. 2. The greater the level of debt incurred by a firm means: a. the greater the number of shares of common stock issued The higher the financial leverage...
Cash flow identity: Cash flow from assets = Cash flow to creditors + Cash flow to stockholder questions what is the Cash flow from assets what is the Operating cash flow what is the Net capital spending what is the Change in NWC what is the Cash flow to creditors what is the Cash flow to stockholders please help! explanations help aswell! Nabors, Inc 2011 Income Statement (S in millions) Net sales Less: Cost of goods sold Less: Depreciation Earnings...
The Underground Café has an Operating Cash Flow of $187,000 and a cash flow to creditors of $71,400 for the past year. The firm reduced its net working capital by $28,000 and incurred net capital spending of $47,900. What is the amount of the cash flow to stockholders for the last year?
What does it mean to say that managers should maximize shareholders' wealth "subject to ethical constraints"? What ethical considerations might enter decisions that result in cash flow and stock price effects that are valued lower than they might otherwise have been?
1. A firm has interest expense for the year of $400 and cash flow to creditors of negative $250 (CFC -$250). The firm paid off $100 of old debt over the year. How much must it have borrowed over the same year?
MC algo 2-46 Cash Flow To Creditors Adison Winery had beginning long-term debt of $39,231 and ending long-term debt of $44,624. The beginning and ending total debt balances were $48,529 and $53,564, respectively. The company paid interest of $4,309 during the year. What was the company's cash flow to creditors?
Concept Questions 1. Liquidity True or false: All assets are liquid at some price. Explain. 2. Accounting and Cash Flows Why might the revenue and cost figures shown on a standard income statement not represent the actual cash inflows and outflows that occurred during a period? CHAPTER 2 Financial Statements and Cash Flow 35 3. Accounting Statement of Cash Flows Looking at the accounting statement of cash flows. what does the bottom-line number mean? How useful is this number for...