3 When modeling debt and equity finance, you will get circular references when Using an analytical approach Using Excel's iteration function Using opening debt to calculate interest Using average debt to calculate interest 14 What is the impact on cash flow from operations in the current year based on the net change in operating assets and liabilities listed below? 2 Balance shoots Prior Year Current Year 5 Accounts receivable 6 iventories 7 Accounts payable 1,725 1,535 1,325 1,825 1,785 1475 -150 200 200 15 If a company's opening gross cost of PP&E is $21,350, the value of disposals is $3,525, and the closing gross cost of PP&E is $27,850, what is the figure for the company's PP&E acquisitions? $10,025 $8,025 $2,975 $10,000 16 Which of the following is the correct formula for free cash flows to the firm? EBIT x (1 t) Deprecation - Decrease in working capital - CAPEX EBIT x (1-t) + Depreciation Decrease in working capital-CAPEX EBIT x (1 t) Deprecation Increase in working capital - CAPEX EBIT x (1-t) + Deprecation + Increase in working capital-CAPEX 17 Which of the following items is unlikely to be found in a published cash flow statement under "operating activities? Dividends Net income Changes in operating assets and liabilities Depreciation 18 Free cash flows to equity differ from free cash flows to the firm because... Capital expenditure is not deducted when calculating FCF to equity Dividends are deducted when calculating FCF to equity Interest is deducted when calculating FCF to equity Depreciation is not added back when calculating FCF to equity