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
2 answers