Quiz 1 FIN MGMT
10 Questions
3 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

An increase in accounts payable is a

  • Use of cash
  • Source of cash (correct)
  • Neither nor source of cash
  • The cash flow that is available for distribution to a corporation's creditors and stockholders is called the

  • operating cash flow
  • net capital spending
  • cash flow from assets (correct)
  • cash flow to stockholders
  • The cash flow related to interest payments less any net new borrowing is called the

  • operating cash flow
  • capital spending cash flow
  • net working capital
  • cash flow to creditors (correct)
  • Assuming a firm earns taxable income, an increase in _____ will cause the cash flow from assets to increase

    <p>depreciation expense</p> Signup and view all the answers

    A negative cash flow to stockholders indicates which one of the following with certainty?

    <p>Net new equity raised exceeded the dividends paid.</p> Signup and view all the answers

    Ratios that measure how efficiently a firm manages its assets to generate sales are referred to as ____ ratios

    <p>asset management or turnover</p> Signup and view all the answers

    When preparing pro forma statements, which one of the following an analyst is most likely to estimate first?

    <p>Projected sales</p> Signup and view all the answers

    A firm's external financing need is met by

    <p>Issuing debt and/or equity</p> Signup and view all the answers

    The plowback ratio is

    <p>the percentage of net income available to the firm to fund future growth</p> Signup and view all the answers

    Common-size financial statements express all balance sheet accounts as a percentage of

    <p>Total assets</p> Signup and view all the answers

    Use Quizgecko on...
    Browser
    Browser