Which of the Following Properly Links the Factors Affecting a Firm's

question 21

Short Answer

Which of the following properly links the factors affecting a firm's ability to generate cash with its need to use cash in operations?
$\begin{array}{lll}& \underline {\text { Ability to generate cash}}&\underline {\text { Need to use cash}}\\a. &\text { Profitability of goods and services sold }& \text { Working capital requirements}\\b. &\text { Sales of existing plant assets }& \text { Plant capacity requirements}\\c. & \text { Borrowing capacity} & \text { Debt service requirements}\\d. & \text { Profitability of goods and services sold }& \text { Debt service requirements}\\\end{array}$

---

Definitions:

Gross Earnings

The total amount of money earned by an individual or company before any deductions or taxes are taken out.

Withholding Allowance

A deduction that employees can claim to reduce the amount of their income that is subject to federal income tax withholding.

Gross Earnings

The total amount of income earned by an individual or a business before any deductions like taxes, benefits, and other adjustments.

Withholding Allowance

A determination made by employees on their W-4 form that influences the amount of federal income tax withheld from their paycheck.