Analyzing Statements of Cash Flows II

Which of the following best describes Cash Flow from Operating activities (CFO)?

Acquisition of Property, Plant, and Equipment (PPE) is classified under which cash flow category?

Which of the following is an example of a Cash Flow from Financing activity?

When performing a common-size analysis of the cash flow statement, each item is typically expressed as a percentage of which line item?

Free Cash Flow to the Firm (FCFF) represents cash available to:

Which of the following is the correct formula for calculating FCFF starting from Net Income?

In the calculation of FCFF starting from CFO, how is interest expense treated?

Which of the following defines Free Cash Flow to Equity (FCFE)?

What is the formula for FCFE starting from CFO?

Calculate FCFF given: Net Income = 500, Non-cash charges = 100, Interest Expense = 50, Tax Rate = 30%, Fixed Capital Investment = 200, Working Capital Investment = 50.

Calculate FCFE given: CFO = 1000, Fixed Capital Investment = 400, Net Borrowing = 100.

Which ratio is calculated as CFO divided by Net Revenue?

The Cash Return on Assets ratio is defined as:

In the Cash Flow per Share (CFPS) calculation, what must be subtracted from CFO in the numerator?

Which coverage ratio is calculated as CFO divided by Total Debt?

The Interest Coverage ratio using cash flows is calculated as:

The Reinvestment Ratio is defined as CFO divided by:

If a company has a Dividend Payment ratio of 2.5, this implies:

In a common-size cash flow statement where inflows are expressed as a percentage of total inflows, what does a high percentage for 'Cash from Customers' indicate?

Calculate the Debt Payment Ratio given: CFO = 500, Dividend Paid = 50, Long-term Debt Repayment = 200.

Which ratio measures the firm's ability to satisfy short-term obligations?

What is the primary difference between FCFF and FCFE regarding interest?

Calculate Net Borrowing for FCFE if the firm issued 500 in new debt and repaid 200 in old debt.

Which cash flow category includes the payment of dividends to shareholders?

The 'Investing and financing' ratio is calculated as CFO divided by:

If a firm sells a building, the proceeds are recorded in:

Calculate Cash Flow per Share if CFO is 1,000,000, Preferred Dividends are 200,000, and Weighted Average Common Shares are 100,000.

Which of the following is considered a 'Non-cash charge' (NCC) added back to Net Income for FCFF calculation?

Which ratio indicates the percentage of operating cash flow available for capital expenditures?

If CFO is 200, Interest Paid is 20, Taxes Paid is 30, what is the Interest Coverage ratio?

Cash to Income ratio is defined as:

The calculation of FCFE starting from FCFF is:

Why is 'Interest x (1 - t)' added back to Net Income when calculating FCFF?

In a common-size cash flow statement, if 'Cash paid to suppliers' is (40 percent), this usually represents percentage of:

Which activity would include the 'proceeds from issuing shares'?

Calculate Cash Return on Equity given: CFO = 300, Beginning Equity = 900, Ending Equity = 1100.

A 'Cash flow to revenue' ratio of 0.15 means:

Under 'Investing activities', which of the following is an outflow?

What does a high Dividend Payment ratio indicate if it exceeds 1.0 significantly?

Cash collected from customers is classified as:

Which of the following is NOT a Performance Ratio listed in the text?

Calculate the 'Reinvestment Ratio' if CFO is 1000 and cash paid for long-term assets is 250.

Net Borrowing in the FCFE formula refers to:

If a company has high 'Cash to Income' ratio (greater than 1), it generally suggests:

Which component is subtracted when calculating FCFF from CFO?

In a common-size analysis, expressing 'Cash paid to suppliers' as a percentage of 'Total Outflows' allows an analyst to:

Working Capital Investment in the FCFF calculation refers to:

If Net Income is 100 and CFO is 150, what is the most likely reason for the difference?

Which ratio uses 'Average Assets' in the denominator?

What is the numerator for the 'Debt coverage' ratio?