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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Students have asked these similar questions

Pam and Jim are saving money for their two children who they plan to send to university.The eldest child will enter university in 5 years while the younger will enter in 7 years. Each child is expected spend four years at university. University fees are currently R20 000 per year and are expected to grow at 5% per year. These fees are paid at the beginning of each year.Pam and Jim currently have R40 000 in their savings and their plan is to save a fixed amount each year for the next 5 years. The first deposit taking place at the end of the current year and the last deposit at the date the first university fees are paid.Pam and Jim expect to earn 10% per year on their investments.What amount should they invest each year to meet the cost of their children’s university fees?

You make a loan of R100 000, with annual payments being made at the end of each year for the next 5 years at a 10% interest rate. How much interest is paid in the second year?

Dr Z. Mthembu is the owner of Mr Granite, a business in the Western Cape. After more than 28 years of operation, the business is thinking about taking on a new project that would provide a profitable new clientele. With only R1.5 million in resources, the company is now working on two competing projects. The starting costs for Project X and Project Y are R625,000 and R600000, respectively. These projected are estimated for the next 7 years timeframe. According to SARS, the tax rate is 28%, and a discount rate of 11.25% is applied.Projects X Project YProject X Project Y129000 145000154000 145000312000 145000168000 14500098250 14500088750 14500016050 145000

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

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

Concept explainers

To discuss: The examples of actions that increases the cash

Explanation of Solution

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Chapter 18 Solutions