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21 January, 15:21

Which of the following properly links the factors affecting a firm's ability to generate cash with its need to use cash in financing? Ability to generate cash Need to use cash Answers:

A. Sales of existing plant assets Plant capacity requirements

B. Profitability of goods and services sold Working capital requirements

C. Profitability of goods and services sold Debt service requirements

D. Borrowing capacity Debt service requirements

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  1. 21 January, 15:33
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    D. Borrowing capacity Debt service requirements

    Explanation:

    Borrowing capacity Debt service requirements links the factors affecting a firm's ability to generate cash with its need to use cash in financing.
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