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please answer asap ThisIsMyCo Inc. has been your business for the past several years. You have put together your cash flow statements for the past
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ThisIsMyCo Inc. has been your business for the past several years. You have put together your cash flow statements for the past 3 years to get a better idea of how your business is managing cash flow. Year ending December 31 2021 2020 2019 Cash flow from operations 31,000 32,000 30,000 Cash flow from investing -4,000 3,000 -5,000 Cash flow from financing -20,000 -18,000 -15,000 Net change in cash 7,000 11,000 10,000 Cash, beginning of year 66,000 55,000 45,000 Cash, end of year 73,000 66.000 55,000 Profit for the year 35,000 34,000 32,000 The next five questions relate to the cash flow statements below. The rest of the questions in this section of the exam are independent. Question 1 (1 point) Which section of the cash flow statement is considered the most important? Why? a) operating, because it is the only sustainable source of cash Ob) All are considered equally important. Oc) financing, because it shows how much the company has borrowed d) the change in cash, because it shows the year-over-year difference Question 2 (1 point) Which life-cycle stage was the business most likely in, back in 2019? a) maturity b) start-up c) decline Od) either growth or start-up e) growth Question 3 (1 point) Question 3 (1 point) Which life-cycle stage is the business most likely in by 2021? a) either maturity or growth b) decline c) growth Od start-up e) maturity Question 4 (1 point) Cash flow from investing activities has been fairly steady, and slightly negative, throughout this period. Which of the following transactions can cause investing cash flow to be negative? a) borrowing from the bank Ob) receiving contributions from owners Oc) disposal of long-lived assets Od) purchasing or replacing long-lived assets e) lower depreciation expense 1) lower dividends Cash flow from financing activities has been fairly steady, and slightly negative, throughout this period. Which of the following transactions can cause financing cash flow to be negative? a) a higher income tax rate b) disposal of long-lived assets Oc) purchase of long-lived assets d) increased depreciation expense e) paying down a bank loan Question 6 (1 point) Which type of financial ratio can be calculated from both income statement and balance sheet figures? a) solvency b) liquidity c) efficiency d) profitability and efficiency e) profitability Question (1 point) Which type of financial ratio tells you how well a company can cover its long-term liabilities? a) profitability and efficiency b) solvency c) profitability d) efficiency e) liquidity Question 8 (1 point) Which type of financial ratio tells you how well a company can cover its current liabilities? a) profitability b) efficiency c) profitability and efficiency d) solvency e) liquidity Step by Step Solution
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