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MyVeryOwnBiz Inc. has been your business for the past several years. You have put together your cash flow statements for the past $3$ years to get a better idea of how your business is managing cash flow.

Year ending December $31202120202019$

Cash flow from operations $5,00020,00040,000$

Cash flow from investing $25,00010,000-5,000$

Cash flow from financing $35,000-5,000-25,000$

Net change in cash $65,00025,00010,000$

Cash, beginning of year $167,000142,000132,000$

Cash, end of year $232,000167,000142,000$

Profit for the year $1,00015,00035,000$

Enter the letter that corresponds to your choice. $($A B C D E$)$

Which section of the cash flow statement is considered the most important? Why?

A$.$ All the sections are considered equally important.

B$.$ financing, because it shows how much the company has borrowed

C$.$ operating, because it is the only sustainable source of cash

D$.$ Investing, because it shows how much the company has spent on long$-$lived assets

E$.$ the change in cash, because it shows the year$-$over$-$year difference

Which life$-$cycle stage was the business most likely in$,$ back in $2019?$

A$.$ start$-$up

B$.$ growth

C$.$ maturity

D$.$ either growth or maturity

E$.$ decline

Which life$-$cycle stage is the business most likely in by $2021?$

A$.$ start$-$up

B$.$ growth

C$.$ maturity

D$.$ either growth or maturity

E$.$ decline

Cash flow from investing activities has gone from negative to positive over the years. Which of the following transactions can cause investing cash flow to increase?

A$.$ borrowing from the bank

B$.$ lower depreciation expense

C$.$ receiving contributions from owners

D$.$ disposing of long$-$lived assets

E$.$ lower dividends

Cash flow from financing activities has gone from negative to positive over the years. Which of the following transactions can cause financing cash flow to increase?

A$.$ purchase of long$-$lived assets

B$.$ a lower income tax rate

C$.$ disposal of long$-$lived assets

D$.$ decreased depreciation expense

E$.$ borrowing from the bank

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