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

question 67

Essay

For each of the following scenarios,determine if it is an indicator of potential cash flow problems:
                                                                                    Potential future cash
                                                                                      flow problems
                                                                                         Yes/No
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 short-term borrowing.

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Definitions:

Demand Constraints

Limitations or restrictions on the amount of goods or services that can be sold or provided, often due to market or resource capabilities.

Intuitive Method

A decision-making process based on natural instincts, feelings, or judgments rather than on formal analysis or logical reasoning.

Initial Feasible Solution

Initial Feasible Solution is the starting point in optimization and linear programming problems that meets all constraints and can be used as a basis for subsequent improvement.

Source 3-Destination 1

A model or representation used in operations or logistics to denote the transfer or processing of resources or information from three origins to one endpoint.