Whether decrease in accounts payable will decrease cash. Introduction: Any payment of cash made by the company to its creditors are termed as accounts payable

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 16, Problem 16.1C

Summary Introduction

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable

Expert Solution & Answer

Explanation of Solution

Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.

Conclusion

Thus, decrease in accounts payable will ultimately affects the cash flow of the company.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

How does risk-adjusted return, such as the Sharpe Ratio, influence portfolio selection beyond just expected return? Please provide a reference

How do investors determine an acceptable level of risk when building their portfolios? Is it purely based on financial goals, or are there specific models that guide these decisions? Please provide a reference

Your firm is considering an expansion of its operations into a nearby geographic area that the firm is currently not serving. This would require an up-front investment (startup cost) of $989,060.00, to be made immediately. Here are the forecasts that were prepared for this project, shown in the image. The long-term growth rate for cash flows after year 4 is expected to be 4.73%. The cost of capital appropriate for this project is 12.48%. What is the NPV, Profitability Index, IRR and payback in this case?

Answer 2

Question

Chapter 16, Problem 16.1C

Summary Introduction

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable

Expert Solution & Answer

Explanation of Solution

Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.

Conclusion

Thus, decrease in accounts payable will ultimately affects the cash flow of the company.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 16, Problem 16.1C

Summary Introduction

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable

Expert Solution & Answer

Explanation of Solution

Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.

Conclusion

Thus, decrease in accounts payable will ultimately affects the cash flow of the company.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 16, Problem 16.1C

Summary Introduction

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable

Expert Solution & Answer

Explanation of Solution

Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.

Conclusion

Thus, decrease in accounts payable will ultimately affects the cash flow of the company.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 16, Problem 16.1C

Summary Introduction

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable

Expert Solution & Answer

Explanation of Solution

Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.

Conclusion

Thus, decrease in accounts payable will ultimately affects the cash flow of the company.

Answer 6

Chapter 16, Problem 16.1C

Summary Introduction

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable

Expert Solution & Answer

Explanation of Solution

Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.

Conclusion

Thus, decrease in accounts payable will ultimately affects the cash flow of the company.

Answer 7

Chapter 16, Problem 16.1C

Summary Introduction

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable

Answer 8

Expert Solution & Answer

Explanation of Solution

Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Conclusion

Thus, decrease in accounts payable will ultimately affects the cash flow of the company.

Answer 12

Ch. 16.1 - What is the difference between net working capital...Ch. 16.1 - Prob. 16.1BCQ Ch. 16.1 - Prob. 16.1CCQ Ch. 16.1 - List five potential sources of cash.Ch. 16.2 - What does it mean to say that a firm has an...Ch. 16.2 - Prob. 16.2BCQ Ch. 16.2 - Prob. 16.2CCQ Ch. 16.3 - Prob. 16.3ACQ Ch. 16.3 - Prob. 16.3BCQ Ch. 16.4 - Prob. 16.4ACQ

Whether decrease in accounts payable will decrease cash. Introduction: Any payment of cash made by the company to its creditors are termed as accounts payable

To discuss: Whether decrease in accounts payable will decrease cash. Introduction: Any payment of cash made by the company to its creditors are termed as accounts payable

Explanation of Solution

Want to see more full solutions like this?

Chapter 16 Solutions

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable