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16 May, 07:34

Financial data for a company is provided below: Cash, end of year, $500,000 Estimation of yearly cash expenses from negative cash flows from operations on statement of cash flows, $ (155,000) Cash, beginning of year, $400,000 Accounts receivable, $10,000 Inventory, $20,000 Net Income for the year How many months will the company be able to continue without positive cash flows or additional financing (round to nearest whole month)

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  1. 16 May, 10:07
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    The company be able to continue without positive cash flows or additional financing for 39 Months

    Explanation:

    in given information assessed negative income from activity is (155,000), this is expected that there won't be any income from contributing or financing exercises.

    information given for records of sales and stock is superfluous since both are a piece of working income which is as of now evaluated.

    there for shutting balance toward the finish of year is $500,000 separated by negative income of (150,000) equivalents to months organization will ready to proceed without positive income or extra financing
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