Register
If a firm has a lot of net cash flow does that mean the firm's balance sheet must be high
35.7k views
2 votes
If a firm has a lot of net cash flow does that mean the firm's balance sheet must be high

User Elvislkm
by
5.8k points

1 Answer

1 vote
No, it does not. That money could go to other places beside the balance sheet. The business might have prepaid expenses or existing debt, which could siphon off a portion of their net income, leaving their balance sheet much lower.
User Stirner
by
6.3k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

7.3m questions

9.7m answers

Other Questions

In what way did the GI Bill contribute to the growth of professional and white-collar jobs ? A.by providing US laborers with new job-training programs B.by giving US veterans assistance to purchase a new
What is meant by data mining ?
What is the best way to describe a stock market?
You sell popcorn during your schools football games. Knowing that the people usually buy more when the price is lower, how would you price your popcorn after halftime?
Identify the advantages and disadvantages of a command economy.
Link Copied!