cash flow work

2. Please explain the difference between the sources and use of cash. Give at least two examples of each.

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3. Please explain the functions of a cash budget by mentioning three of them.

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4. Discuss three types of financial ratio categories. Explain what is the information extracted from them.

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5. Why are cash equivalents included on the statement of cash flows?

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Cash budget preparation

1- Prepare a cash budget for a company for April, May and June.

Question 3

Question 4

Acer company balance sheet lists the following items:

Cash: $10,000

Cash equivalents: $20,000

Accounts receivable: $5,000

Inventory: $30,000

Property & equipment: $50,000

Accounts payable: $12,000

Short-term debt: $10,000

Long-term debt: $20,000

1- Please calculate the current ratio of the company. Offer your expert opinion the ratio and what it says about how liquidity is managed.

2- Please calculate the cash ratio. How would you explain it ?