9 Questions
What is the total operating cash flows for ABC Inc.?
28
What is the effect of depreciation expense on property, plant, and equipment?
It decreases PP&E
What is the classification of net capital expenditure in the statement of cash flows?
Investing activities
What is the purpose of calculating net capital expenditure?
To determine the change in property, plant, and equipment
What is the effect of an increase in receivables on operating cash flows?
It decreases operating cash flows
What is the classification of cash flows from increase in payables?
Operating activities
What is the relationship between net income and operating cash flows?
Operating cash flows are always higher than net income
What is required to calculate net capital expenditure?
PP&E, depreciation expense, and net income
What is the effect of an increase in inventory on operating cash flows?
It decreases operating cash flows
Test your understanding of financial analysis concepts, including buying and selling on credit, current assets, liabilities, and shareholders' equity. Evaluate your knowledge of accounting principles and financial statements.
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