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QUESTION 1 Turnover ratios are generally calculated for each of the following assets except: Accounts Recievable...

QUESTION 1

  1. Turnover ratios are generally calculated for each of the following assets except:

    Accounts Recievable

    Inventory

    Cash

    Plant and Equipment

QUESTION 2

  1. Corporate annual reports do not usually include

    internal auditors report and opinion about the financial statements

    financial statements from the prior year

    historical summary of selected financial data for the past 5 years or more

    financial statements for the most recent year
business   accounting   
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Answer #1

Free cash flows is a measure of financial performance of the entity and is calculated as net income plus depreciation and amortisation expense less change in working capital ( current assets - current liabilities) less capital expenditure.   
Operating cash flow is alike free cash flow except it does not exclude capital expenditure.Both are useful in making comparisons amongst industries and assists in calculating financial ratios. Higher the operating and free cash flow, higher the appreciation in value of shares of the company.

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