Describe Where on the Statement of Cash Flow One Would

question 38

Essay

Describe where on the Statement of Cash Flow one would find a non-cash purchase of equipment.

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Definitions:

Property, Plant, And Equipment

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, including land, buildings, machinery, and vehicles.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales, by dividing net credit sales by the average accounts receivable.

Days' Sales

An indicator of a company's efficiency in managing its inventory, it calculates the number of days it typically takes to sell the entire inventory.

Average Accounts Receivable

The mean value of accounts receivable over a given period, indicating the average amount owed to a company by its customers.