Archive for December, 2009
What are the main reason for negative cash flow in a construction company?
I am working in the company of my dad – a small construction company for bathrooms. I noticed a problem with the financials. The company posts a positive profit but has negative (almost zero) cash flow.
From the view of a construction company, what could be the main reason for the negative cash flow? Where should I start looking to see where the money flows?
Any ideas?
Brian Novo
Cash Flow Statement Question not sure if i got right on my test?
Which of the following statements regarding the cash flow statement is true?
A. A typical company has a positive cash flow from investing activities.
B.The disposal of plant assets is classified as an investing activity.
C. Depreciation is classified as a cash flow from financing activities.
D. Financing activities only include long-term borrowings.
E. Changes in accounts receivables is classified in cash flow from financing activity
Duane Salome
Can property lease payments be added back to cash flow in a commercial mortgage?
If an established business exists on a leased property (and will be moving into the new property after closing), can the lease payments be added back to the cash flow when determining the approval amount for loan?
I will not renew my lease if I can find a nice piece of commercial property.
I dont understand why not. To me it is like telling a renter interested in purchasing a home that their qualifying amount is based on their income AFTER they pay their rent. It doesnt make sense. The only difference is that the business owner can take that expense off their taxes.
Grisel Schuneman






















