When a company is about to launch a new product, it must necessarily add inventory of...

When a company is about to launch a new product, it must necessarily add inventory of the product before the launch in stores. This would _________ free cash flow in the period the inventory was created.

A. decrease
B. have no effect on
C. increase
D. first decrease, then increas
A “firm commitment” in a public offering of securities would be made by which kind of bank?
A. A commercial bank
B. An investment bank
C. Both a. and b. could make a firm commitment
D. Neither a. nor b. could make a firm commitment
E. Form 11-K

One financial statement posts results from every other financial statement. Which financial statement is this?

- A. statement of retained earnings

B. income statement
C. statement of cash flows
D. balance sheet

Funds available for investment in Treasury bills are in the capital market.

A. True

B. False

In what Form filed with the SEC would you find a company’s annual, audited financial statements?

A. Form 4
B. Form 144
C. Form 10-K
D. Form 8K
E. Form 11
K

Solutions

Expert Solution

A . decrease. Because inventory usually generates cashflow but here it is a new product and is about to launch so for the period of inventory creation cashflow will decrease.

B.An investment bank- investment bank mkes agreement with companies for doing underwriting. Here investment bank are just like agents and by agreement they agrees to sell securities to public. An underwriter usually buys all the securities and offers to public even if it is not bought by investors company gets price of securities from investment banks.

D.Balance sheet is the statement which posts results from every other financial statements. The answer of income statement that is Net Income is connected with balance sheet and cash flow statement. Cash flow statement start with Net Income . The net change in cash on the cash flow statement and cash amount of the previous period's balance sheet in total makes the cash for this period.

B. False. T bills are related to Money market. Treasury bill is a money market instrument. T bills have 1 year or less than 1year maturity. These are issued by government

C.FORM 10k It gives comprehensial summary of a comapny's financial performance. A copy of this should be given if a shareholder asks for it.

jeff jeffy answered 1 year ago

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