Give the reasons why net income is not necessarily the same as net cash receipts. 2. Why is net cash inflow as important, or sometimes more important, than net income? 3. Observe the operations of your favorite fast food restaurant. What is good about their cash flow? 4. Compare cell phone with a (a) prepaid plan against (b) postpaid plan. Name the advantages at (a) over (b), and (b) over (a) in terms of cash receipts and service income. 5. Why would sellers resort to selling through credit cards?
Give the reasons why net income is not necessarily the same as net cash receipts. 2. Why is net cash inflow as important, or sometimes more important, than net income? 3. Observe the operations of your favorite fast food restaurant. What is good about their cash flow? 4. Compare cell phone with a (a) prepaid plan against (b) postpaid plan. Name the advantages at (a) over (b), and (b) over (a) in terms of cash receipts and service income. 5. Why would sellers resort to selling through credit cards?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1. Give the reasons why net income is not necessarily the same as net cash receipts.
2. Why is net cash inflow as important, or sometimes more important, than net income?
3. Observe the operations of your favorite fast food restaurant. What is good about their cash flow?
4. Compare cell phone with a (a) prepaid plan against (b) postpaid plan. Name the advantages at (a) over (b), and (b) over (a) in terms of cash receipts and service income.
5. Why would sellers resort to selling through credit cards?
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