Chapter 12 ( 3 questions) - Know how to calculation your cash flow from financial, investing and operations for example: 1. Company A has the following information: Inventory Increase During Year: $5,000 Prepaid Expenses Increase During Year: $4,000 A/R Increase During Year: $2,000 A/P Increase During Year: $6,000 Net Income: $10,000 Depreciation Expense: $2,000 What is the cash flow from operations? Chapter 13 ( 3 questions) "Understand why you might use different ratios for financial analysis *Understand how you might calculate the following ratios: Days Sales Outstanding Ratio Using the current ratio, which company is the most liquid? Using the Gross Profit Ratio, which company has the highest gross profit margin? Which ratio measures the ability of a company to utilize its assets to generate income? 1. Which ratio measures the extent to which borrowings are utilized by a company to finance its asset purchases