Business, 24.11.2020 22:30 Wolfzbayne

The focus on traditional financial statements is -Select- data rather than cash flow. However, cash flow is important to investors, managers, and stock analysts. Therefore, corporate decision makers and security analysts need to modify accounting data provided to them. An important modification is the concept of free cash flow (FCF). Many analysts regard FCF as being the single and most important number that can be developed from the accounting statements, even more important than net income. The equation for free cash flow is:

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Answer from: maggie2018

The focus on traditional financial statements is ACCOUNTING data rather than cash flow.

Free cash flows = (EBIT x (1 - tax rate)] + non-cash expenses (depreciation and amortization) - capital expenditures - increases in net working capital

Explanation:

Cash is KING. A company might b extremely profitable from an accounting point of view, but if it doesn't have enough cash to keep running, it will go bankrupt. E.g. many companies increase their sales revenue by handing out long credit terms to most or all of its customers including some that may not be able to pay them back. That increases accounts receivables and net income, but until the cash is collected, this is useless. The other option that a company has is to factor their accounts receivables but factoring companies are not dumb and they will pay a very low amount for them.

Companies and stocks are always valued based on cash flows, never on accounting records. Accounting records might be deceiving, but cash never lies. Either the company has or doesn't have cash. A company's cash flow tells investors how well managed a company is.

E.g. Remember that during the Great Recession both GM and Chrysler went bankrupt and the government had to bail them out. If you looked at their accounting records of the previous year, they were both profitable, so why did they burst in just a few months? They didn't have cash. Cars and SUVs are useless unless you sell them and collect the cash. Ford didn't go bankrupt because it had billions of dollars in cash, not because they were doing great. Ford was actually the company that performed worst form an accounting point of view. But out of the 3 car companies, it was the only one properly managed. Accounting records are great for the IRS but are meaningless to an investor.

Answer from: Quest

My first question is what benefits do you expect to achieve from career exploration? the benefits that i expect to achieve from career exploration. for me i think the benefits of exploring many different careers are that you get exposed to more, so it's easier for you to pick which one you like best. another benefit is that you get a more first hand view of what jobs are more likely to be needed in the future and that can be factored into your consideration. my second question is what do you expect to be the most challenging parts of your career planning process? why? the most challenging parts of my career planning process is trying to get things in order and trying to write this paragraph it is confusing and, hard work. and last but not least my third question is i think the most challenging part is taking the first step and really deciding on a career you want to pursue; there are so many options and it can be hard to choose.which jobs will allow me to make a living? ; what skills does emergency medical technician emergency medical services medical » physiology require?

Answer from: Quest

Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

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