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1) What are the three types of financial management decisions? For each type of decision, give an example of a business transaction that would be

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1) What are the three types of financial management decisions? For each type of decision, give an example of a business transaction that would be relevant. (6 marks) 2) Answer TRUE or FALSE for each of the following and explain your answer. (8 marks) a) There is no way for a company to minimize agency costs. b) Capital markets deal exclusively in stock. Money markets deal exclusively in debt instruments. c) Maximization of the current earnings of the firm is the main goal of the financial manager d) The difference between a firm's current assets and its current liabilities is called net working capital 1) Estimate cash flow from operating activities for JUICERO Inc. using the following information: (9 Marks) Net income $90,000 Depreciation 10,000 Increase in inventories 20,000 Decrease in accounts receivable 1,000 Increase in accounts payable 7,000 Decrease in accrued salaries & wages 2,500 Increase in prepaid expenses 5,000 2) TARTAN LTD. is a company operating in Nova Scotia. Currently, the company uses the following two CCA classes. Class 8 (CCA rate 35%) Class 5 (CCA rate 20%) During 2019, the company purchased $85,000 worth of Class 8 assets and $200,000 worth of Class 5 assets. Calculate TARTAN LTD's total CCA in 2019 and 2020 due to these two purchases. (10 MARKS)

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