Cash Flow Revision: Business Failure

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10 Questions

What is the primary purpose of the historical cash flow statement in the given context?

To analyze and understand past cash flows

What is the relationship between Δ LTD and new loan in the given context?

Δ LTD is a result of the new loan

What is the purpose of calculating the Net Profit After Tax (NOPAT) in the context of cash flow analysis?

To determine the Total Funds Provided (T.F.P)

What is the implication of Δ LTD being positive in the given context?

The company has taken a new loan

What is the purpose of the Cash Flow from Operations (CFO) in the context of cash flow analysis?

To determine the cash flow available for debt repayment

What is the relationship between Δ NPE and Maintenance in the given context?

Δ NPE is the result of the Maintenance

What is the implication of a negative Δ LTD in the given context?

The company has repaid a part of the loan

What is the purpose of the Depreciation Expense in the context of cash flow analysis?

To determine the Cash Flow from Operations

What is the relationship between Δ NPE and CAPEX in the given context?

Δ NPE is the result of the CAPEX

What is the purpose of the Total Funds Provided (T.F.P) in the context of cash flow analysis?

To determine the Permanent Funds

This quiz covers the reasons behind business failure, with a focus on cash flow management and financial planning. Learn about the common mistakes that lead to business failure and how to avoid them.

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