Outline a strategy for companies to spend excess cash, Accounting Assignment Homework Help

Anonymous
timer Asked: May 17th, 2016
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Question Description

  • Outline a strategy for companies to spend excess cash and maximize the value of that spend. Provide a rationale for your response.

E-Activity: Use the Internet to research one (1) publicly traded company in which you are interested. Review its most recent statement of cash flows and income statement on the company Website. Be prepared to discuss.

  • From the e-Activity, compare and contrast the selected company’s statement of cash flows to its income statement. Suggest at least two (2) items from each statement that investors should analyze when deciding whether or not to purchase the company’s stock. Justify your response.

Tutor Answer

Doctor_Ralph
School: UT Austin

Outline a strategy for companies to spend excess cash and maximize the value of that
spend. Provide a rationale for your response.
A good strategy for a company to spend excess cash would be on promotional activities and
production. Boosting promotions and production activities can bring short term results to the
company. Such short term gains can be measured with revenue streams into the company that
can improve the cash flow ratios. For instance, improvements in the operational cash flow ratio
can mean a lot to the investors as they can anticipate the stock prices to rise. The value of the
amount spent also comes back to the company when sales increase in the short term...

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Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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