The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations. To calculate: The cash flow adequacy ratio of the company.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 12.19E

1.

To determine

Introduction:The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations.

To calculate:The cash flow adequacy ratio of the company.

2.

To determine

Introduction: The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations.

To state:The importance of cash adequacy ratio and how the ratio derived in part 1 can be used in determining if a company is eligible for loan or not.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Bartlett's Pears has a profit margin of 8.20 percent on sales of $24,300,000. If the firm has a debt of $10,400,000 and total assets of $21,000,000, what is the firm's ROA?

Return on equity

general accounting

Answer 2

Question

Chapter 12, Problem 12.19E

1.

To determine

Introduction:The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations.

To calculate:The cash flow adequacy ratio of the company.

2.

To determine

Introduction: The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations.

To state:The importance of cash adequacy ratio and how the ratio derived in part 1 can be used in determining if a company is eligible for loan or not.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 12.19E

1.

To determine

Introduction:The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations.

To calculate:The cash flow adequacy ratio of the company.

2.

To determine

Introduction: The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations.

To state:The importance of cash adequacy ratio and how the ratio derived in part 1 can be used in determining if a company is eligible for loan or not.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 12.19E

1.

To determine

Introduction:The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations.

To calculate:The cash flow adequacy ratio of the company.

2.

To determine

Introduction: The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations.

To state:The importance of cash adequacy ratio and how the ratio derived in part 1 can be used in determining if a company is eligible for loan or not.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 12.19E

1.

To determine

Introduction:The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations.

To calculate:The cash flow adequacy ratio of the company.

2.

To determine

Introduction: The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations.

To state:The importance of cash adequacy ratio and how the ratio derived in part 1 can be used in determining if a company is eligible for loan or not.

Answer 6

Chapter 12, Problem 12.19E

1.

To determine

Introduction:The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations.

To calculate:The cash flow adequacy ratio of the company.

Answer 7

Chapter 12, Problem 12.19E

1.

To determine

Introduction:The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations.

To calculate:The cash flow adequacy ratio of the company.

Answer 8

2.

To determine

Introduction: The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations.

To state:The importance of cash adequacy ratio and how the ratio derived in part 1 can be used in determining if a company is eligible for loan or not.

Answer 9

2.

To determine

Introduction: The ratio that is used to calculate if enough cash flows are generated by operation to pay off the expenses is termed as cash adequacy ratio. It suggests the ability of a company to cover up its annual cost of debt with the help of cash flow from operations.

To state:The importance of cash adequacy ratio and how the ratio derived in part 1 can be used in determining if a company is eligible for loan or not.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 12 - Prob. 12.19E Ch. 12 - Statement of Cash Flowsâ€”Direct Method Lang...Ch. 12 - Prob. 12.12AMCP

Solution Summary: The author explains the calculation of the cash adequacy ratio, which suggests the company's ability to cover up its annual debt with the help of cash flow from operations.

Want to see the full answer?

Chapter 12 Solutions