1. Using the indirect method of cash flow statement, what is the net cash provided by operating activities for the year 2020? *

A) Cash inflows of $9,823

B) Cash outflows of $9,823

C) Cash outflows of $10,395

D) Cash outflows of $2,053

E) None of the above.

2. Using the indirect method of cash flow statement, what is the net cash provided by investing activities for the year 2020? *

A) Cash inflows of $9,823

B) Cash outflows of $10,395

C) Cash inflows of $10,395

D) Cash outflows of $2,053

E) None of the above.

3. Using the indirect method of cash flow statement, what is the net cash provided by financing activities for the year 2020? *

A) Cash inflows of $9,823

B) Cash outflows of $10,395

C) Cash inflows of $2,053

D) Cash outflows of $2,053

E) None of the above.

4. Using the indirect method of cash flow statement, what is the net change in cash for the year 2020? *

A) Decrease in cash by $2,625

B) Increase in cash by $2,625

C) Increase in cash by $5,040

D) Decrease in cash by $2,415

E) None of the above.

5. What conclusions can you draw about the cash flows for the company in 2020? *

A) The comapny is unable to generate enough cash from operating activities in order to cover debts and pay divided.

B) The company has generated an increasing dollar amount of cash from operations (CFO) from 2019 to 2020 while being able to use most of cash to pay long-term debt and dividends.

C) The trend is upward for both net income and CFO but the ending cash balance has decreased. The firm appears to be doing well while expanding its assets.

D) Both (B) & (C)

E) None of the above

Consider the following selected financial information for Aishti company. Aishti Company Income Statement For the Year Ended December 31, 2020 Revenues $94,500 Less: Depreciation expense $6,825 Less: Other operating expenses 74,550 Less: Interest Expense 3,990 Income before income taxes 89,135 Income tax expense $3,197 Net income $5,938 Aishti Company Balance Sheet For the Year Ended December 31, 2019 & 2020 2020 2019 Assets Cash $2,415 $5,040 Accounts Receivable $5,355 $6,195 Inventories $10,290 $10,080 Plant & Equipment $32,970 $22,575 Less: Acc. Depreciation ($15,960) ($9,135) Total Assets $35,070 $34,755 Liabilities & O/E Accounts Payable $3,885 $5,775 Income Tax Payable $1,260 $2,940 Long-Term Debt $9.555 $8,715 Common Stock $11,550 $14,175 Retained Earnings $8,820 $3,150 Total Liabilities and OE $35,070 $34,755