ACCT - Chapter 5 ProblemsKnowledgeCats
Chapter 5 (10 marks)
5.1 Which of the two basic reporting approaches for cash flows from operating activities did the company adopt?
5.2 What is the quality of earnings ratio for the most recent year? What are the major causes of differences between profit and cash flow from operations?
5.3 What is the capital acquisitions ratio for the three-year period in total? (Refer to the ratio computation in the textbook on page 254.) How is the company financing its capital expenditures?
5.4 In the most recent year, what portion of the cash flow from operations was paid to shareholders in the form of dividends?
5.5 How much cash did the company pay for interest during the most recent year? How much cash did it pay for income taxes? Where did you find these amounts? (Hint: recall that interest expense and income tax expense are not necessarily equal to the cash payments for interest and taxes, respectively).
5.6 What is the effect of the change in trade receivables on cash flows from operations for the most recent year (that is, did the change increase or decrease operating cash flows, and -by how much)? Explain you answer and identify the direction and amount of the change.
5.7 What is the effect of the change in inventories on cash flows from operations for the most recent year (that is, did the change increase or decrease operating cash flows, and by how much)? Explain your answer and identify the direction and amount of the change.
- 7 years ago
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