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yes retained earnings can be used to get more capital for business to smooth out the cash flow problems.

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Q: Can retained earnings be used for cash flow purposes?
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Related questions

Why retained earnings does not appear on a cash flow statement?

Changes in retained earnings are shown in cash flow from financing activities.


Why are retained earnings deducted to obtain the free cash flow?

Retained earnings are deducted because they are only used by the corporation. These are not distributed to shareholders as dividends so they cannot be used as part of that cash flow.


Where do you enter Retained Earnings on a Cash Flow Statement?

Retained Earnings does not appear on a cash flow statement; however, the net profit or loss for the period (which gets closed to Retained Earnings) is usually the second item on the cash flow report. Beginning Cash Balance is the first. Then, all the cash changes on the Balance Sheet (such as reduction of debt) and the non-cash items on the Income Statment (such as depreciation) are listed to reconcile to the Ending Cash Balance.


Journal entry to reflect cash dividends from retained earnings?

The name for journal entries that reflect cash dividends from retained earnings is closing entries. This also reflects book value and cash flow.


What is cash flow statment?

A cash flow statement seeks to project or report cash flows after expenses that could be used for debt service or retained earnings.


Where do dividends appear?

Dividends appear in Balance Sheet and Cash flow Statements (CFS). In Balance Sheet they will have an effect on Cash and Retained Earnings, while in CFS they will reflect on the cash transactions.


What are different accounting report?

The balance sheet, income statement, statement of retained earnings, and a cash flow report are different types of accounting reports.


What is retained cash flow?

Retained cash flow is the cash generated from operation which can be used for reinvestment. So basically it is cash from operation minus all dividend payments.


What are the four financial statements explain their basic content and why it is important that the statements are prepared?

balance sheet,income statement,cash flow statement,retained earnings


Where do dividends on the financial statements?

Dividends are reported on the income statement?


What four general-purpose Financial Statements do business enterprises use?

If I remember this correctly these are Statement of Cash Flows Income Statement Statement of Retained Earnings Balance Sheet


What is the Price and Earnings ratio when a company has an Earnings Per Share of 2.00 and a cash flow per share of 3.00 and a price and cash flow ratio of 8.0?

A company has an EPS of $2.00 Cash flow per share of $3.00 Price/cash flow ratio of 8.0x What is its P/E ratio? Price Per Earnings Ratio = Market Value Per Share / Earnings Per Share (EPS) 8.0 x 3.00 = 24 24/2 P/E = 12X