For Each of the Following Scenarios, Determine If It Is

question 15

Essay

For each of the following scenarios, determine if it is an indicator of potential cash flow problems:
$\begin{array}{|l|l|l|}\hline & & \text { Potential future cash } \\\hline & & \text { flow problems } \\\hline&&\text { Yes/No } \\\hline \text { a. } & \text { Growth in accounts receivable or inventories that is less the growth rate in sales. } & \\\hline \text { b. } & \text { Increase in accounts payable that exceed the increase in inventories. } & \\\hline \text { c. } & \text { Capital expenctitures that substentially exceed cash flow from operations. } & \\\hline \text { d. } & \text { Sales of marketable securities are less than purchases of marketable securities. } & \\\hline \text { e. } & \text { Other operating current liabilities that grow at alesser rate than sales. } & \\\hline \text { f. } & \text { A reduction or elinination of dividend payments } &\\\hline \text { g. } & \text { A substantial shirf from long-term borrowing to short-term borrowing. } &\\\hline\end{array}$

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Definitions:

Systems Perspective

An analytical approach that views entities as complex wholes comprised of interrelated parts, suggesting that understanding each part requires context of the entire system.

Equifinality

The ability of an open system to reach the same final state from differing initial conditions and by a variety of paths.

Systems Perspective

An analytical approach that views a system as a cohesive whole comprised of interrelated and interdependent parts functioning together.

Global Climate Change

The long-term alteration in Earth's climate and weather patterns, largely attributed to human activities, especially carbon emissions leading to global warming and related environmental impacts.