Question
Wellington’s Funds Flow Statement (Statement of Cash Flows)
Sources
Earnings after taxes $ 80
Depreciation 84
Decrease in accounts receivable 42
Increase in accounts payable 13
Increase in notes payable 196
Increase in accruals 22
Increase in long-term debt 7 .
Total sources $ 444
Uses
Purchases of gross plant (Add Dep) $ 392
Increase in inventory 14
Dividends paid 38 .
Total uses $ 444.00
The firm's liquidity problem stems from a low working capital. This is evident because of the high cash expenses and very little cash income. They could improve their liquidity by taking out a loan or tap their reserves if they have any.
Question 5. Discuss how to solve the airline’s most pressing problems.
just need help with the last question thanks
Sources
Earnings after taxes $ 80
Depreciation 84
Decrease in accounts receivable 42
Increase in accounts payable 13
Increase in notes payable 196
Increase in accruals 22
Increase in long-term debt 7 .
Total sources $ 444
Uses
Purchases of gross plant (Add Dep) $ 392
Increase in inventory 14
Dividends paid 38 .
Total uses $ 444.00
The firm's liquidity problem stems from a low working capital. This is evident because of the high cash expenses and very little cash income. They could improve their liquidity by taking out a loan or tap their reserves if they have any.
Question 5. Discuss how to solve the airline’s most pressing problems.
just need help with the last question thanks