Question 2

Which of the following would be a cash flow from financing activities? (check all that apply)

Proceeds from selling equipment

Payments to suppliers

Proceeds from issuing stock

Repayments of principal portion of debt

Payments to acquire a company

Question 3

A company has the following cash flows:

Cash from operations		10
Cash from investing activities		(1)
Cash from financing activities		(9)

Which growth stage best describes this pattern of cash flows?

Decline

Early growth

Stable

Perky

Start-up

Question 4

A company bought a $1,000,000 building and $500,000 of land with a $300,000 cash down payment and used a new mortgage to pay the balance. What is the investing cash flow in this transaction?

($1,200,000)

($1,500,000)

($1,000,000)

($300,000)

($1,800,000)

Question 5

Which of the following would be shown as a negative number in the Operating section of the SCF under the indirect method? (check all that apply)

Decrease in Accounts Receivable

Depreciation on a building

Capital expenditures

Gain on sale of equipment

Decrease in Accounts Payable