上一主题:CFA Level I:FSA : financial analysis techniques(Reading 28) 习题精选
下一主题:CFA Level I:FSA : understanding balance sheet(Reading 26) 习题精选
返回列表 发帖

40. A cash flow statement where the cash from operations was prepared under the direct method will most likely contain which of the following account titles?
A. Cash received from customers.
B. Increase in accounts receivable.
C. Cash received from accounts receivable collections.


Ans: A.
The following figure contains an example of a presentation of operating cash flow for Bao Company using the direct method.

Bao Company

Operating cash flow- direct method

For the year ended December 31, 2012


Cash collections from customers

$429,980


Cash paid to suppliers

(265,866)


Cash paid for operating expenses

(124,784)


cash paid for interest

(4,326)


Cash paid for taxes

(14,956)


Operating cash flow

$20,048


The following figure contains an example of a presentation of operating cash flow for Bao Company using the indirect method.

Bao Company

Operating cash flow- indirect method

For the year ended December 31, 2012


Net income

$18,788


Adjustments to reconcile net income to cash flow provided by operating activities:


  Depreciation and amortization

7,996


  Deferred income taxes

416


  Increase in accounts receivables

(1,220)


  Increase in inventory

(20,544)


  Decrease in prepaid expenses

494


  Increase in accounts payable

13,406


  Increase in accrued liabilities

712


Operating cash flow

$20,048

TOP


41. A company’s financial statement data for the most recent year include the following:

Net income

$100


Depreciation expense

25


Purchase of machine

50


Sale of company trucks

30


Sale of common stock

45


Decrease in accounts receivable

10


Increase in inventory

20


Issuance of bonds

25


Increase in accounts payable

15


Increase in wages payable

10


Based only on these items, cash flow from financing activities is closest to:
A. $70.
B. $85.
C. $140.




Ans: A.

Sale of common stock

45


Issuance of bonds

25


Financing cash flows

$70

TOP


42. An analyst gather the following information about a company:

CFO

$800


Purchase of plant and equipment

40


Sale of land

30


Interest expense

80


Depreciation and amortization

100


The company has a tax rate of 35% and prepares its financial statements under U.S.GAAP.
The company’s free cash flow to the firm (FCFF) is closest to:
A. $840.
B. $870.
C. $940.






Ans: A.
FCFF
= CFO + interest expense net of tax – net capital expenditures
= $800+80x(1-0.35)-40+30
=$842
Depreciation and amortization do not have to be added when calculating FCFF from CFO. They are added when calculating FIFF from net income.
FCFF= net income+ noncash charges + interest expense x (1-tax rate)- fixed capital investment – working capital investment

TOP


43. For which of the following balance sheet items is a change in market value most likely to affect net income?
A. Debt securities issued by the firm.
B. Debt securities that the firm intends to hold until maturity.
C. Securities held with the intent to profit over the short term.



Ans: C.
Securities held with the intent to profit over the short term are classified as trading securities, and the changes in their market values are reflected in their balance sheet values and also reported on the income statement.

A and B are incorrect. Debt securities issued by the firm, and debt securities that the firm intends to hold until maturity, are both reported at amortized cost, not market value. Debt and equity securities that the firm does not except to hold to maturity or to sell in the near term are marked to market on the balance sheet, but unrealized gains and losses do not affect the income statement.

TOP


44. An analyst gathers the following information:

Net income

$100


Decrease in accounts receivable

30


Depreciation

25


Increase in inventory

17


Increase in accounts payable

10


Decrease in wages payable

5


Increase in deferred taxes

17


Sale of fixed assets

150


Purchase of fixed assets

340


Profit from the sale of fixed assets

5


Dividends paid out

35


Sale of new common stock

120


Based on the above information, the company’s cash flow from operations under U.S.GAAP is:
A. $155.
B. $165.
C. $182.




Ans: A.

Net income

$100


Adjustments for noncash and nonoperating items:


  Depreciation

25


  Increase in deferred income taxes

17


  Profit from sale of equipment

(5)


Adjustment for working capital items


  Decrease in accounts receivables

                  30


  Increase in inventory

(17)


  Increase in accounts payable

10


  Decrease in wages payable

(5)


Operating cash flow

$155


Dividends paid are CFF, not CFO

TOP


45. Which of the following statements about cash flow is least accurate?
Under U.S.GAAP, cash flow from:
A. Operations includes cash operating expenses and changes in working capital accounts.
B. Financing includes the proceeds of debt issued and from the sale of the company’s common stock.
C. Investing includes interest income from investment in debt securities.



Ans: C.
Interest income is considered an operating cash flow under U.S.GAAP.

TOP


46. An analyst gathered the following data about a company:

Collections for customers

$5,000


Depreciation

$800


Cash expenses (including taxes)

$2,000


Tax rate

30%


Net cash increased

$1,000


If inventory increases over the period by $800, cash flow from operations equals:
A. $1,600.
B. $2,400.
C. $3,000.




Ans: C.
Use the direct method.

Collections from customers

$5,000


Cash expenses

($2,000)


Cash flow from operations

$3,000


Cash expenses are given. If you had been given COGS, you would need to adjust that for inventory changes to get cash expenses for inputs. Depreciation is a non-cash change.
Changes in depreciation are used with the indirect method. Net change in cash will reflect CFI and CFF, not just CFO.

TOP


47. Which of the following statements about the indirect method of calculating cash flow from operations is least accurate?
A. Depreciation is added back to net income because it is an expense not requiring cash.
B. No adjustment is needed to account for changes in accounts receivable because no cash is involved.
C. No adjustment is needed for the payment of taxes because the tax payment is already in net income.




Ans: B.
Using the indirect method requires adjusting for change in working capital accounts such as accounts receivable, inventory, and account payable.

TOP


48. Under U.S.GAAP, which of the following statements about classifying cash flows is least accurate?
A. Cash received from issuing long-term debt or stock is considered a financing cash flow.
B. All income taxes paid are considered operating cash flows, even if some arise from financing and investing activities.
C. Dividend payments made are financing cash flows, while interest payments received are investing cash flows.




Ans: C.
Interest and dividends received and interest paid are considered operating cash flows under U.S.GAAP, but dividends paid are considered financing cash flows.
Reference: Question 3.

TOP


49. Bao Technologies reported the following information for the year ending December 31:

Data


Net sales

50,000


Cash expenses

3,250


Cash inputs

17,000


Cash taxes

7,000


Increase in receivables

500


Depreciation expense

1,000


Cash flow from investing(CFI)

(5,000)


Cash flow from financing(CFF)

(4,250)


If the cash balance increased $13,000 over the year, cash flow from operations (CFO) is closest to:
A.
$21,250.
B.
$21,750.
C.
$22,250.





Ans: A.
The easiest way to calculate CFO here is
total cash flow-CFI-CFF
=$13,000+5,000+4,250
=$22,250.
Alternatively,
CFO =$50,000-3,250-17,000-7,000-500
         =$22,250.

TOP

返回列表
上一主题:CFA Level I:FSA : financial analysis techniques(Reading 28) 习题精选
下一主题:CFA Level I:FSA : understanding balance sheet(Reading 26) 习题精选