Which of these is a warning sign of problems in managing cash flows?Group of answer choicesProceeds of borrowings that are continually greater than repayments of borrowings.All are warning signs.Cash flow from operating activities that is significantly lower than profit.Dividends paid to shareholders that are greater than profit.

Which of the following is not an early warning indicator of cash flow problems?The entity continues to borrow more money than it repays.Operating cash outflowsOperating activities are paid for using proceeds raised from the issue of shares.Cash received from customers is greater than cash paid to suppliers.

Identify which of the following is NOT a strategy for managing cash flow.*1 pointEnsuring that the business has more long-term assets such as land and buildingsArranging readily available short-term loans and a bank overdraftHiring accounts receivable staff to ensure that customers are paying the full amount on timeKeeping track of money that is owed to the business and chasing up outstanding debts

how cash flow affect financial distress?

The statement of cash flows cannot be used to determine:Multiple Choicechanges in working capital.expenditures on long-term assets.profitability as measured by specific revenues and expenses.reliance on external financing.

Shortage of cash requiring corrective actions to avoid issues.Select the correct termCash-flow ProjectionMismanagementCash-Flow ProjectionCash-Flow Deficit