1. Visa Inc.

Scenario: Cash Flow Statement Preparation

Data: Visa Inc. presents the following information for the year:

• Net income: $1,000,000
• Depreciation expense: $200,000
• Increase in accounts receivable: $50,000
• Decrease in inventory: $20,000
• Increase in accounts payable: $30,000
• Interest expense paid: $100,000
• Income tax paid: $150,000

Requirements:

1. Prepare Visa Inc.'s cash flow statement using the indirect method.
2. Calculate Visa Inc.'s net cash provided by operating activities.
3. Discuss the components of the cash flow statement and their importance.
4. Analyze Visa Inc.'s liquidity and cash management strategies.
5. Evaluate the impact of operating, investing, and financing activities on Visa Inc.'s cash flow.