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

Amortization of a patent

Purchases of equipment

Collections from customers

Loss on sale of equipment

Payments for salaries and wages

1

point

2.

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

Proceeds from issuing stock

Proceeds from selling equipment

Payments to acquire a company

Payments to suppliers

Repayments of principal portion of debt

1

point

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

1

point

4.

A company bought $50,000 of inventory for $20,000 cash, with the balance due to the supplier in 30 days. What is the operating cash flow in this transaction?

($70,000)

($30,000)

$0

($20,000)

($50,000)

1

point

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 Payable

Gain on sale of equipment

Decrease in Accounts Receivable

Depreciation on a building

Capital expenditures

1

point

6.

A company has Net Income of $10, which included $2 of depreciation expense. There were no other noncash expenses in Net Income and there were no gains or losses. Accounts receivable was $20 at the beginning of the year and $25 at the end of the year. Accounts Payable was $15 at the beginning of the year and $5 at the end of the year. Inventory was $12 at the beginning of the year and $7 at the end of the year. All other balance sheet accounts were unchanged over the year. What was the companys Cash Flow from Operating Activities?

$12

($2)

$7

$2

$22

1

point

7.

A company put together a preliminary version of its financial statements. Its Net Income was $300, its Depreciation Expense was $80, and its Cash Flow from Operations was $190. The accountant found an error in computing straight-line Depreciation Expense. It should have been $70. What is Cash from Operations after fixing this mistake? (you can ignore taxes)

$190

$200

$180

$370

$0

1

point

8.

A company sold PP&E for $200 cash. Prior to the sale, the net book value of the PP&E on the financial statements was $240. Thus, the company recorded a Loss on Sale of Equipment of $40 in Net Income. What is the operating cash flow in this transaction?

$200

$160

$0

$240

$40

1

point

9.

Which of the following transactions would result in the change in Inventory on the SCF being a different number than the change in Inventory on the Balance Sheet? (check all that apply)

Some of the inventory was sold for cash

Some of the inventory came in the acquisition of another company

Some of the inventory was purchased on account

Some of the inventory is held by subsidiaries in countries that use a different currency

Some of the inventory was stolen by employees

1

point

10.

A company had Revenue of $1000, Depreciation and Amortization Expense of $100, Interest Expense of $100, and Tax Expense of $50. All other Expenses were $500. What was the companys EBITDA?

$1000

$500

$250

$300

$400