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Question
Which of the following factors could explain why Regal Industrial Fixtures had a negative net cash flow last year, even though the cash on its balance sheet increased?a. The company repurchased 20% of its common stock.
b. The company sold a new issue of bonds.
c. The company made a large investment in new plant and equipment.
d. The company paid a large dividend.
e. The company had high amortization expenses.
Answer
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In a portfolio of three different stocks, which of the following could NOT be true?
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Which of the following is not correct for a firm with seasonal sales and customers who all pay promptly at the end of 30 days?
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b. The level of accounts receivable will be constant from month to month.
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d. The level of accounts receivable at the end of each quarter will be the same.
e. DSO will vary from month to month.
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b. False