ThisIsMyBiz Inc. has been your business for the past several years. You have put together...
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Accounting
ThisIsMyBiz 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 31
2021
2020
2019
Cash flow from operations
5,000
-5,000
-25,000
Cash flow from investing
-10,000
-25,000
-50,000
Cash flow from financing
35,000
75,000
150,000
Net change in cash
30,000
45,000
75,000
Cash, beginning of year
120,000
75,000
0
Cash, end of year
150,000
120,000
75,000
Profit (Loss) for the year
1,000
(8,000)
(35,000)
Question 1: Which life cycle stage was the business most likely in 2019?
a) start up b) growth c) either growth or start up d) maturity e) decline
Question 2: Which life cycle stage was in by 2021?
A) either maturity or growth b) growth c) maturity d) start up e) decline
Question 3: Cash flow from investing has become less negative in 2021, which of the following transactions can cause investing cash flow to increase?
a) lower depreciation expense
b) receiving from contributions
c) purchase long lived assets
d) borrow from bank
e) lower dividends
f) disposal of long lived assets
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