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1. Classify the following changes in each of the accounts as either an outflow or an inflow of cash. (1 Mark - 0.2 each) a)

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1. Classify the following changes in each of the accounts as either an outflow or an inflow of cash. (1 Mark - 0.2 each) a) Is a decrease in land and buildings an inflow or an outflow of cash? b) is an increase in accounts payable an inflow or an outflow of cash? c) Is a decrease in vehicles an inflow or an outflow of cash? d) Is an increase in accounts receivable an inflow or an outflow of cash? e) Is the payment of dividends an inflow or an outflow of cash? 2. Robert Arias recently inherited a stock portfolio from his uncle. Wishing to learn more about the companies in which he is now invested, Robert performs a ratio analysis on each one and decides to compare them to each other. Some of his ratios are listed here: Island Burger Fink Roland Ratio Electric Utility Heaven Software Motors Current ratio 1.06 1.35 6.79 4.55 Quick ratio 0.92 0.87 5.23 3.73 Debt ratio 0.69 0.45 0.04 0.34 Net profit margin 6.25% 14.33% 28.46% 8.43% Assuming that his uncle was a wise investor who assembled the portfolio with care, Robert finds the wide differences in these ratios confusing. Help him out. 3. You have $5,100 to invest today at 11% interest compounded annually. Find how much you will have accumulated in the account at the end of: (0.5 Marks each) (1) 4 years, (2) 8 years, and (3) 12 years

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