Accounting technicals
Last week at work, someone shared this potential interview question as we discussed full-time recruiting for those trying to lateral. I would love to hear people's answer to this question: "Give 5 ways to increase cash without touching the income statement."
What do you think?
1 - Raise equity 2 - Raise debt (I would argue that the interest costs come later but the cash increase would have no direct impact on IS) 3 - Working capital management (increase payable days / reduce receivable days) 4 - Sell assets 5 - Stop paying common dividends
Could come up with some more but it's 7:49am and I have 11 minutes to eat, drink coffee and change.
"4 - Sell assets" - Wouldn't that be reflected on the income statement by flowing through other comprehensive income?
Income statement vs statement of comprehensive income - not necessarily the same thing. Also only the profit / loss would show up - if you sold at carrying value it would have no impact.
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