a search this course 5% MINDTAP Exam 1 249:22 The focus on trasitional nandial s
ID: 2813081 • Letter: A
Question
a search this course 5% MINDTAP Exam 1 249:22 The focus on trasitional nandial statements ista sather than cash ow However, cash flow is important to investos, managers, and stock analysts. Therefore, decsion makers and security analysts need to modity ancial staement data provided to them An important modification is the concept of free cash now C). many analysts regard FCF as being the-ge and most tant nu ber that an be developed from thie incong 'tatunents, enn man mportant than not income. The egaton " feee cash flow is ro-leem i-T) + D precibon and-tiration1-1Capt.txpendium·UM operating wet inga-ati A netive FOF mea tha the cmany does not have suclentunds to finance its Investments in fied assets and warking capital, to pay for these investments. eative FC new product ne, and high growth companies-with re cpital inestments Quantilative Prob:Rnsries 2013 and 2012 blnce sees and incme statements ane shown ble and equivalentsExplanation / Answer
1)
Accountind data
Traditional financial statements records accounting data in financial statements. It does not show the cash available to the company.
2)
Free cash flow
Free cash flow is the actual cash available fo payments to investors after company has made investments in fixed asstes, new products and operating working capital
3)
Operating working capital
Free cash flow is the actual cash available fo payments to investors after company has made investments in fixed asstes, new products and operating working capital
4)
Internal funds
Internal funds means when the firm uses it's profits to source new investments.
5)
Capital markets
When a company requires funds to invest in new projects, they can raise money by issuing debt or equity in capital markets.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.