conditions realistic?
2007-09-13 15:34:36 · 4 answers · asked by cute 1 in Business & Finance ➔ Other - Business & Finance
If a co. is operating on a bank overdraft, it would have no cash. But this can't go on forever. It should turn around one day and be able to pay off the overdraft and the business shd be able to finance itself instead of looking to outside financing.
2007-09-14 01:04:57 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
Based on the average business this is not realistic. I do not know of any business combination that would have no debt (accounts payable, rent, utilities, manufacturing costs, etc.). Without cash (current assets) and cash equivalents a business cannot maintain liquidity and would soon go bankrupt. Even if a company has very little debt, they would still have payroll costs which must use cash or cash equivalents to pay for this.
Hope this helps.....
2007-09-13 15:49:09 · answer #2 · answered by chris p 4 · 0⤊ 0⤋
When I was a very young man I set myself the task of becoming a very poor man, and by God I have succeeded beyond my wildest dreams. My poverty levels are such that I have to withhold monitory payments to my staff as well as pensions, sickness benefits etc, so that I can afford this years Bentley. And may I say, dammit, that I am reduced to drinking a rather indifferent '32 Chateau Margeaux. Such is life. As a parting statement, which, I feel sure that you will not believe, but I have had to curtail this years annual holiday on Mustique to 6 weeks instead of the usual 8 weeks. Life is so damned unfair.
2016-03-18 05:32:41 · answer #3 · answered by Jane 4 · 0⤊ 0⤋
conditions company hold cash marketable securities
2016-02-02 09:43:13 · answer #4 · answered by ? 4 · 0⤊ 0⤋