Accounts week 2 essay

Accounts week 2 essay - WEEK 2 - ASSIGNMENT CHINA IV...

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WEEK 2 - ASSIGNMENT CHINA IV Submitted to Professor: Patricia M. Casey In Partial fulfillment of the requirements of ACC 501 Accounting Fundamentals Summer Semester 2007 National University San Diego, CA
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WEEK 2 - ASSIGNMENT 1. China Trade demonstrated a negative balance of cash flows from operations due to excessive outflow of cash during the reporting period. As the rule-of thumb indicates China Trade is not increasing its balance from operations towards the positive, this negative balance is an indicator of a company that eventually won’t be able to cover its investing activities and eventually will not be able to cover its loans or interests payments if the situation is not resolved, especially if the status is maintained for long periods of time. A company that has an unhealthy cash flow from operations presents a weak stance against competition, because if cash is not being generated in the same amounts or better as its competitors the company will eventually loose out during difficult times. In
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Accounts week 2 essay - WEEK 2 - ASSIGNMENT CHINA IV...

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