10 Questions
An increase in accounts payable is a
Source of cash
The cash flow that is available for distribution to a corporation's creditors and stockholders is called the
cash flow from assets
The cash flow related to interest payments less any net new borrowing is called the
cash flow to creditors
Assuming a firm earns taxable income, an increase in _____ will cause the cash flow from assets to increase
depreciation expense
A negative cash flow to stockholders indicates which one of the following with certainty?
Net new equity raised exceeded the dividends paid.
Ratios that measure how efficiently a firm manages its assets to generate sales are referred to as ____ ratios
asset management or turnover
When preparing pro forma statements, which one of the following an analyst is most likely to estimate first?
Projected sales
A firm's external financing need is met by
Issuing debt and/or equity
The plowback ratio is
the percentage of net income available to the firm to fund future growth
Common-size financial statements express all balance sheet accounts as a percentage of
Total assets
Test your knowledge of cash flow and financial ratios with this quiz. Identify different types of cash flows and understand the impact of various financial indicators on a firm's cash flow.
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