Multiple choice exercise-cash flows Exercise 1 Calculate the cash flow from operating activities using the following...

  

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Multiple choice exercise-cash flows Exercise 1 Calculate the cash flow from operating activities using the following information (expressed in millions) Net income = 5 Depreciation = 1 Decrease in inventory = 2 Increase in accounts payables = 3 a) 1 b) 7 c) 5 d) 9 Exercise II The balance sheet of ABC shows the following information for years 2019 and 2020: 2019 2020 Assets Assets Equipment 5.000.000 Equipment 3.000.000 Accumulated depreciation (1.000.000) Accumulated depreciation (1.200.000) Calculate the cash flow from investing activities a) -2.000.000 b) 2.000.000 c) -2.200.000 d) 2.200.000 Exercise III Increase in account receivables = 3 Increase in prepaid expenses = 2 Decrease in deferred revenues = 2 Increase in salary payables = 1 The balance sheet of ABC shows the following information for years 2019 and 2020: 2019 2020 Equity and Liabilities Share capital. Bank loans 5.000.000 10.000.000 2.000.000 Equity and Liabilities Share capital Bank loans Accounts payables Accounts payables Also, ABC pays a dividend of 1.000.000 euros in cash during 2020 Calculate the cash flow from financing activities a) 1.000.000 14.000.000 3.000.000 3.000.000 b) 2.000.000 c) -7.000.000 d) 15.000.000 Multiple choice exercise-cash flows Exercise 1 Calculate the cash flow from operating activities using the following information (expressed in millions) Net income = 5 Depreciation = 1 Decrease in inventory = 2 Increase in accounts payables = 3 a) 1 b) 7 c) 5 d) 9 Exercise II The balance sheet of ABC shows the following information for years 2019 and 2020: 2019 2020 Assets Assets Equipment 5.000.000 Equipment 3.000.000 Accumulated depreciation (1.000.000) Accumulated depreciation (1.200.000) Calculate the cash flow from investing activities a) -2.000.000 b) 2.000.000 c) -2.200.000 d) 2.200.000 Exercise III Increase in account receivables = 3 Increase in prepaid expenses = 2 Decrease in deferred revenues = 2 Increase in salary payables = 1 The balance sheet of ABC shows the following information for years 2019 and 2020: 2019 2020 Equity and Liabilities Share capital. Bank loans 5.000.000 10.000.000 2.000.000 Equity and Liabilities Share capital Bank loans Accounts payables Accounts payables Also, ABC pays a dividend of 1.000.000 euros in cash during 2020 Calculate the cash flow from financing activities a) 1.000.000 14.000.000 3.000.000 3.000.000 b) 2.000.000 c) -7.000.000 d) 15.000.000

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1 Cash flow from operating activities Net profit Deprecation Decreased assets Increased liabilities ... View the full answer