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Operating Cash Flow is calculated using adjusting net income for items (depreciation, changes to accounts receivable, and changes to inventory).

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Q: What factors determine the need for cash in the firm's operation?
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What factors determine the need for cash in the firms operations?

Operating Cash Flow is calculated using adjusting net income for items (depreciation, changes to accounts receivable, and changes to inventory).


Why firms hold cash?

there are basically three reasons why firms hold cash, namely speculation precaution transaction


Is the importance of financial managers to firms with large cash inflows greater than for firms with smaller cash flows?

true


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 is operation cash flow?

Operation Cash Flow Ratio is a financial ratio that is used to identify the percentage of money raised by the company as part of the operation cash flow to the total debt the company owes. Operating cash flow is the cash generated from the operations of the organization after excluding taxes, interest paid, investment income etc.FormulaOCFR = Operation Cash Flow / Total Debts


What factors determine the need for cash in the firm's operations?

Operating Cash Flow is calculated using adjusting net income for items (depreciation, changes to accounts receivable, and changes to inventory).


How does the capital consumption allowance affect the firms cash flows?

answer the question


What is the formula for free cash flow?

FREE CASH FLOW FORMULA IS: CASH GENERATED FROM OPERATION - CASH EXPENDIRTURES IN OPERATIONS


What factors should be considered in deciding whether the cost of capital for a foreign affiliate should be higher lower or the same as the cost of capital for a comparable domestic operation?

Key factors include whether the cash flows of the affiliate are closely tied to the state of the local economy or to the world economy, the correlation between the local and domestic economies, and the volatility of the foreign affiliate's cash flows relative to that of the domestic operation. The greater (lesser) each of these factors, the higher(lower) the foreign affiliate's cost of capital relative to that of the domestic operation. In general, the closer these factors are to each other, the closer their costs of capital


WHAT measure would be most useful in comparing the operating profitability of two firms in different industries?

cash in divided by cash out


What is Operation Cash Flow Ratio?

Operation Cash Flow Ratio is a financial ratio that is used to identify the percentage of money raised by the company as part of the operation cash flow to the total debt the company owes. Operating cash flow is the cash generated from the operations of the organization after excluding taxes, interest paid, investment income etc.FormulaOCFR = Operation Cash Flow / Total Debts


Is most important to the daily operation of a business?

CASH