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Cash Flow Questions
Cash Flow Questions
1. Using the following information, what is the firms cash flow from operations?
Net income
Decrease in accounts receivable
Depreciation
Increase in inventory
Increase in accounts payable
Decrease in wages payable
Increase in deferred tax liabilities
Profit from the sale of land
a. $158
$ 120
20
25
10
7
5
15
2
b. $170
c. $174
Assuming US.GAAp, use the following data to answer Question 2 through 4:
Net income
Depreciation
Taxes paid
Interest paid
Dividends paid
Cash received from sale of company building
Sale of preferred stock
Repurchase of common stock
Purchase of machinery
Issuance of bonds
Debt retired through issuance of common stock
Paid off long term bank borrowings
Profit on sale of building
2. Cash flow of operations is:
a. $70
b. $ 100
c. $ 120
3. Cash flow from investing activities is:
a. $ -30
$ 45
75
25
5
10
40
35
30
20
50
45
15
20
b. $20
c. $ 50
4. Cash flow from financing activities is:
a. $30
b. $55
c. $75
5. Given the following:
Sales
Increase in inventory
Depreciation
Increase in accounts receivable
Decrease in accounts payable
After tax profit margin
Gain on sale of machinery
Cash flow from operation is:
$ 1500
100
150
50
70
25%
30
a. $115
b. $275
c. $375
6. Which of the following items is least likely considered a cash flow from financing activity
under US.GAAP?
a. Receipt of cash from the sale of bonds
b. Payment of cash for dividends
c. Payment of interest on debt
7. Which of the following would be least likely to cause a change in investing cash flow?
a. The sale of a division of the company
b. The purchase of new machinery
c. An increase in depreciation expense
8. Which of the following is least likely a change in cash flow from operations under US.GAAP?
a. A decrease in notes payable
IFRS
b. Financing activities
c. Operating activities
Financing activities
a. ($5000)
($21.000)
b. ($75.000)
($21.000)
c. ($75.000)
($38.000)
25. In preparing a common size cash flow statement, each cash flow is expressed as a percentage
of:
a. Total assets
b. Total revenue
c. The change in cash