The examples of actions that increases the cash

Question

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Answer 1

Question

Chapter 18, Problem 18.1CTF

Summary Introduction

To discuss: The examples of actions that increases the cash

Expert Solution & Answer

Explanation of Solution

Increasing long-term debt:

The borrowings in excess of the long-term are indicated by long-term debt. Companies borrow cash mainly from short-term funds or from issuing the long-term funds or bonds.

Examples: Research expenses, insurance, license fee in startup companies.

Increasing equity:

Increasing equity indicates sale of stocks, which increases the cash of the business.

Examples: Increase in retained earnings

Increasing current liabilities:

It indicates short debts are due to creditors or suppliers within a short period of 90 days.

Examples: Increase in creditors, increase in bills payable and increase in outstanding expenses.

Decreasing current assets:

Decrease in current assets will increase the current liabilities. Sale of inventories for cash will reduce the current assets.

Examples: Decrease in stocks, decrease in debtors and decrease in an accrued income

Decreasing fixed assets:

Decrease in fixed assets means the sale of some fixed assets property. This indicates the increase in cash and sources of funds.

Example: Due to damages, obsolesces, wear and tear.

Conclusion

Thus, the above-mentioned are the elements and examples of the increase in cash, which increases the level of cash of the company.

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Answer 2

Question

Chapter 18, Problem 18.1CTF

Summary Introduction

To discuss: The examples of actions that increases the cash

Expert Solution & Answer

Explanation of Solution

Increasing long-term debt:

The borrowings in excess of the long-term are indicated by long-term debt. Companies borrow cash mainly from short-term funds or from issuing the long-term funds or bonds.

Examples: Research expenses, insurance, license fee in startup companies.

Increasing equity:

Increasing equity indicates sale of stocks, which increases the cash of the business.

Examples: Increase in retained earnings

Increasing current liabilities:

It indicates short debts are due to creditors or suppliers within a short period of 90 days.

Examples: Increase in creditors, increase in bills payable and increase in outstanding expenses.

Decreasing current assets:

Decrease in current assets will increase the current liabilities. Sale of inventories for cash will reduce the current assets.

Examples: Decrease in stocks, decrease in debtors and decrease in an accrued income

Decreasing fixed assets:

Decrease in fixed assets means the sale of some fixed assets property. This indicates the increase in cash and sources of funds.

Example: Due to damages, obsolesces, wear and tear.

Conclusion

Thus, the above-mentioned are the elements and examples of the increase in cash, which increases the level of cash of the company.

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Answer 3

Question

Chapter 18, Problem 18.1CTF

Summary Introduction

To discuss: The examples of actions that increases the cash

Expert Solution & Answer

Explanation of Solution

Increasing long-term debt:

The borrowings in excess of the long-term are indicated by long-term debt. Companies borrow cash mainly from short-term funds or from issuing the long-term funds or bonds.

Examples: Research expenses, insurance, license fee in startup companies.

Increasing equity:

Increasing equity indicates sale of stocks, which increases the cash of the business.

Examples: Increase in retained earnings

Increasing current liabilities:

It indicates short debts are due to creditors or suppliers within a short period of 90 days.

Examples: Increase in creditors, increase in bills payable and increase in outstanding expenses.

Decreasing current assets:

Decrease in current assets will increase the current liabilities. Sale of inventories for cash will reduce the current assets.

Examples: Decrease in stocks, decrease in debtors and decrease in an accrued income

Decreasing fixed assets:

Decrease in fixed assets means the sale of some fixed assets property. This indicates the increase in cash and sources of funds.

Example: Due to damages, obsolesces, wear and tear.

Conclusion

Thus, the above-mentioned are the elements and examples of the increase in cash, which increases the level of cash of the company.

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

Answer 4

Question

Chapter 18, Problem 18.1CTF

Summary Introduction

To discuss: The examples of actions that increases the cash

Expert Solution & Answer

Explanation of Solution

Increasing long-term debt:

The borrowings in excess of the long-term are indicated by long-term debt. Companies borrow cash mainly from short-term funds or from issuing the long-term funds or bonds.

Examples: Research expenses, insurance, license fee in startup companies.

Increasing equity:

Increasing equity indicates sale of stocks, which increases the cash of the business.

Examples: Increase in retained earnings

Increasing current liabilities:

It indicates short debts are due to creditors or suppliers within a short period of 90 days.

Examples: Increase in creditors, increase in bills payable and increase in outstanding expenses.

Decreasing current assets:

Decrease in current assets will increase the current liabilities. Sale of inventories for cash will reduce the current assets.

Examples: Decrease in stocks, decrease in debtors and decrease in an accrued income

Decreasing fixed assets:

Decrease in fixed assets means the sale of some fixed assets property. This indicates the increase in cash and sources of funds.

Example: Due to damages, obsolesces, wear and tear.

Conclusion

Thus, the above-mentioned are the elements and examples of the increase in cash, which increases the level of cash of the company.

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Answer 5

Chapter 18, Problem 18.1CTF

Summary Introduction

To discuss: The examples of actions that increases the cash

Expert Solution & Answer

Explanation of Solution

Increasing long-term debt:

The borrowings in excess of the long-term are indicated by long-term debt. Companies borrow cash mainly from short-term funds or from issuing the long-term funds or bonds.

Examples: Research expenses, insurance, license fee in startup companies.

Increasing equity:

Increasing equity indicates sale of stocks, which increases the cash of the business.

Examples: Increase in retained earnings

Increasing current liabilities:

It indicates short debts are due to creditors or suppliers within a short period of 90 days.

Examples: Increase in creditors, increase in bills payable and increase in outstanding expenses.

Decreasing current assets:

Decrease in current assets will increase the current liabilities. Sale of inventories for cash will reduce the current assets.

Examples: Decrease in stocks, decrease in debtors and decrease in an accrued income

Decreasing fixed assets:

Decrease in fixed assets means the sale of some fixed assets property. This indicates the increase in cash and sources of funds.

Example: Due to damages, obsolesces, wear and tear.

Conclusion

Thus, the above-mentioned are the elements and examples of the increase in cash, which increases the level of cash of the company.

Answer 6

Chapter 18, Problem 18.1CTF

Summary Introduction

To discuss: The examples of actions that increases the cash

Expert Solution & Answer

Explanation of Solution

Increasing long-term debt:

The borrowings in excess of the long-term are indicated by long-term debt. Companies borrow cash mainly from short-term funds or from issuing the long-term funds or bonds.

Examples: Research expenses, insurance, license fee in startup companies.

Increasing equity:

Increasing equity indicates sale of stocks, which increases the cash of the business.

Examples: Increase in retained earnings

Increasing current liabilities:

It indicates short debts are due to creditors or suppliers within a short period of 90 days.

Examples: Increase in creditors, increase in bills payable and increase in outstanding expenses.

Decreasing current assets:

Decrease in current assets will increase the current liabilities. Sale of inventories for cash will reduce the current assets.

Examples: Decrease in stocks, decrease in debtors and decrease in an accrued income

Decreasing fixed assets:

Decrease in fixed assets means the sale of some fixed assets property. This indicates the increase in cash and sources of funds.

Example: Due to damages, obsolesces, wear and tear.

Conclusion

Thus, the above-mentioned are the elements and examples of the increase in cash, which increases the level of cash of the company.

Answer 7

Chapter 18, Problem 18.1CTF

Summary Introduction

To discuss: The examples of actions that increases the cash

Answer 8

Expert Solution & Answer

Explanation of Solution

Increasing long-term debt:

The borrowings in excess of the long-term are indicated by long-term debt. Companies borrow cash mainly from short-term funds or from issuing the long-term funds or bonds.

Examples: Research expenses, insurance, license fee in startup companies.

Increasing equity:

Increasing equity indicates sale of stocks, which increases the cash of the business.

Examples: Increase in retained earnings

Increasing current liabilities:

It indicates short debts are due to creditors or suppliers within a short period of 90 days.

Examples: Increase in creditors, increase in bills payable and increase in outstanding expenses.

Decreasing current assets:

Decrease in current assets will increase the current liabilities. Sale of inventories for cash will reduce the current assets.

Examples: Decrease in stocks, decrease in debtors and decrease in an accrued income

Decreasing fixed assets:

Decrease in fixed assets means the sale of some fixed assets property. This indicates the increase in cash and sources of funds.

Example: Due to damages, obsolesces, wear and tear.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Conclusion

Thus, the above-mentioned are the elements and examples of the increase in cash, which increases the level of cash of the company.

Answer 12

Ch. 18.1 - What is the difference between net working capital...Ch. 18.1 - Prob. 18.1BCQ Ch. 18.1 - List five potential sources of cash.Ch. 18.1 - Prob. 18.1DCQ Ch. 18.2 - Prob. 18.2ACQ Ch. 18.2 - Prob. 18.2BCQ Ch. 18.2 - Prob. 18.2CCQ Ch. 18.3 - What keeps the real world from being an ideal one...Ch. 18.3 - What considerations determine the optimal size of...Ch. 18.3 - Prob. 18.3CCQ

The examples of actions that increases the cash

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To discuss: The examples of actions that increases the cash

Explanation of Solution

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Chapter 18 Solutions