For Each of the Following Scenarios,determine If It Is an Indicator

question 81

Essay

For each of the following scenarios,determine if it is an indicator of potential cash flow problems:
                                                                                                                
a. Growth in accounts receivable or inventories that is less the growth rate in sales.
b. Increases in accounts payable that exceed the increase in inventories.
c. Capital expenditures that substantially exceed cash flow from operations.
d. Sales of marketable securities are less than purchases of marketable securities.
e. Other operating current liabilities that grow at a lesser rate than sales.
f. A reduction or elimination of dividend payments
g. A substantial shift from long-term borrowing to shortterm borrowing.

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Definitions:

Fuji Canada

Likely a reference to a company or organization operating in Canada associated with the Fuji brand, which could range from photographic and imaging products to other consumer goods.

Leap Year

A year with 366 days, with an extra day added to February to keep the calendar year synchronized with the astronomical or season year; occurs every four years.

Special Promotion

A marketing campaign offering unique deals or discounts to boost sales or consumer interest.

Wholesaler

A person or entity that buys goods in large quantities from manufacturers or importers and sells them to retailers or other businesses.