Question
ThisIsMyBiz Inc. has been your business for the past several years. You have put together your cash flow statements for the past 3 years to
ThisIsMyBiz 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 | 5,000 | -5,000 | -25,000 |
Cash flow from investing | -10,000 | -25,000 | -50,000 |
Cash flow from financing | 35,000 | 75,000 | 150,000 |
Net change in cash | 30,000 | 45,000 | 75,000 |
Cash, beginning of year | 120,000 | 75,000 | 0 |
Cash, end of year | 150,000 | 120,000 | 75,000 |
Profit (Loss) for the year | 1,000 | (8,000) | (35,000) |
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 47 (1 point)
Which section of the cash flow statement is considered the most important? Why?
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Question 48 (1 point)
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Which life-cycle stage was the business most likely in, back in 2019?
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Question 49 (1 point)
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Which life-cycle stage is the business most likely in by 2021?
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Question 50 (1 point)
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Cash flow from investing activities has become less negative (i.e. increased) in 2021. Which of the following transactions can cause investing cash flow to increase>
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Question 51 (1 point)
Cash flow from financing activities has become less positive (i.e. decreased) in 2021. Which of the following transactions can cause financing cash flow to decrease?
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Question 52 (1 point)
Which type of financial ratio can be calculated from both income statement and balance sheet figures?
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Question 53 (1 point)
Which type of financial ratio tells you how well a company can cover its long-term liabilities?
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Question 54 (1 point)
Which type of financial ratio tells you how well a company can cover its current liabilities?
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Question 55 (1 point)
Which of the following is a liquidity ratio?
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Question 56 (1 point)
In a horizontal analysis of an income statement, what is the correct formula to calculate the percentages?
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Question 57 (1 point)
In a vertical analysis of a balance sheet, what is the correct formula to calculate the percentages?
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Question 58 (1 point)
A vertical analysis of an income statement tells you
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Question 59 (1 point)
A horizontal analysis of a balance sheet tells you
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