TRUE OR FALSE answer the all question please

40 41 Required Homework Questions 42 Repurchasing stock impacts cash Depreciation is added in the Cash Flow Statement because it is a cash expense Amortization reduces cash. Free Cash Flow (FCF) subtracts Capital Expenditures (CapEx) from Cash Flow from Operations. Capital expenditures do not impact cash because they do not flow through the Income Statement. The Cash Flow Statement reflects the actual cash flow generated by a business's operations during an accounting cycle. 50Required Homework Questions Cash Flow from Financing has become a large positive cash inflow in the Disruptive Digitization era. Recently, Cash Flows from Investing Activities have become large negative figures due to sizable invested in acquisitions. Marketable Securities may be Current and Noncurrent Assets excluded from Cash & Cash Equivalents under GAAP. Use the Cumulative Free Cash Flow exhibit below to answer the following questions as TRUE or FALSE. Cumulative Free Cash Flow, Net, 2014-2018 Apple Amazon Charter Mcdonald Netflix Tesla Sum Cash-based Net In 347,778 79,079 34,797 33,029 (7,723) 2,748 489,708 Decrease (Increase) in Assets and Liabiliti 70,707 (47,466) (42,661 6,189 2,869 (12,111) (22,473) Capital Expenditures (Cap Ex) (59,799) (43,466) (27,192) (10,814) (938) (9,401) (151,610) Free Cash Flow 358,686 (11,853) (35,056) 28,404 (5,792) (18,764) 315,625 Acquisitions (including Other Investments and Final (104,039) (22,884) (53,698) 164 356 (591) (180,693) Dividends (61,318) 0 (15,850) 0 (77,168) Issues (Repurchase) of Equity 202,406) 17,97 29,928 (31,454) 1,559 10,442 (173,961) Issues (Retirement) of Debt 97,523 42,400 58,646 16,946 9,860 11,364 236,73 Deployment of Free Cash Flow, Net (270,240) 37,487 34,876 (30,195) 11,775 21,215 (195,083) Increase (Decrease) in Excess Cash 88,445 25,634 (180) (1,791) 5,983 2,451 120,542 ee Cash Flow is based on Cash-based Net Income and management's ability to efficiently manage investments in Assets and Liabilities and control Capital Expenditures. These companies largely deploy all of their free cash flows. Companies with positive Free Cash Flow may still raise new Capital to finance acquisitions. Companies are repurchasing significant amounts of their Equity, in some instances financing repurchases by issuing Debt. Capital Expenditures (CapEx) are deducted from Free Cash Flows to produce Cash Flow from Operations. Trends in Cash Flows from Acquisitions 2014 2015 2016 2017 2018 Total Campbell Soup (232) 0 0 (6,772) (18) (7,022) Google (4,502) (236) (986) (287) (1,491) (7,502) Adobe (30) (826) (48 (460 (6,314) (7,678) Sofware. com 38 159 (3,193 (25) (5,115) (8,354) Charter 0 (28,810 0 (28,819) Inte (934) (913) (15,470) (14,499) (190) (32,006) Charter makes acquisitions every year. nfo Tech companies such as Google, Adobe, Software. com and intel and are very acquisitive. Cash Flow from the Decrease (Increase) in Assets, Net of Liabilities (Changes in Non-cash Net Trade Working Capital) 2014 2015 201 2017 2018 Total Apple 6,573 45,500 29,137 28,516 (39,020) 70,707 Abbvie (616) (7,871) (4,696) (1,911) 489 (14,605) Autozone 96 (45) (286) 34 2,878 2,677 Chipotle 75 (93 (54) 115 46 Mcdonalds 2,414 2,419 1,850 (1,991) 1,497 6,189 t is always favorable to cash flow if Accounts Receivable and Inventories rise. Cash Flow increases when companies liquidate assets. Changes in Non-cash Net Trade Working Capital can be positive or negative to Free Cash Flow.Do each ofthe following transactions impact (increase or decrease) Cash? Receive a payment from a customer reducing Accounts Receivable Issue debt Purchase supplies from a supplier on credit increasing Accounts Payable Amortize Intangible Assets during the period Repurchase shares Make a payment to a supplier reducing Accounts Payable Depreciate PP&E during the period Make a sale to a customer on credit increasing Accounts Receivable Pay cash to procure a new piece of equipment Consume raw material inventory and produce nished goods inventory Under normal circumstances, would you expect a slow-growth mature company or a high-growth startup to generate more cash? :13 Very little Free Cash Flow has been deployed in Mergers and Acquisitions. Value - Economic Value Added (EVA) - is gauged by the extent the company can generate a return from its invested capital over the cost of this capital. Free Cash Flows have been retained, rather than deployed, building a cash hoard of Excess Cash on corporate Balance Sheets.Required Homework Questions Models create a representation of an idea, process or system to explain a real world phenomena. When modeling accounting relationships, one or more accounts may drive the value of other accounts. If modeling strictly based on business relationships, the dollar impact on one account is exactly equal to the dollar impact of the related account. A model of a company's financial statements must exactly replicate historical financial results. A forecast applies a model to translate a set of hypotheses about the performance of a financial entity and its behavior into numerical predictions. A forecast using the ratio 'Days Sales Outstanding' (DSO) is applying a business relationship. Property, Plant & Equipment Derivation