1. In Discounted Cash Flow Analysis, Operating Cash Flow is:
Multiple Choice
equal to Net Income
equal to Taxable Income minus Taxes
equal to Net Income plus Depreciation
equal to Sales minus Variable Costs
Operating Cash Flow is irrelevant when it comes to DCF analysis
2.
Which of the following is/are generally (or always) excluded from discounted cash flow analysis (choose the most complete answer)?
Multiple Choice
Sunk Costs
Sunk Costs and Opportunity Costs
Sunk Costs and Financing Costs (Interest Expense)
Sunk Costs, Opportunity Costs, and Financing Costs
Sunk Costs, Financing Costs, and Taxes
1.
equal to Net Income plus Depreciation
2.
Sunk Costs and Financing Costs (Interest Expense)
1. In Discounted Cash Flow Analysis, Operating Cash Flow is: Multiple Choice equal to Net Income...
1. The three main types of Cash Flow used in Discointed Cash Flow Analysis (as presented in class) are: Multiple Choice Operating Cash Flow, Taxes, and Salvage Value Operating Cash Flow, Initial Investments, and Net Present Value Initial Investment, Net Working Capital, and Depreciation Initial Investment, Net Working Capital, and Operating Cash Flow Initial Investment, Terminal Value, and Operating Cash Flow 2. A cost that occurred in the past and is always to be excluded from discounted cash flow analysis...
When using the income statement to calculate cash flow, cash flow is equal to: net income plus depreciation times the tax rate. net income minus depreciation. net income minus depreciation times the tax rate. net income plus depreciation. net income.
7) When using discounted cash flow analysis for valuation, an appraiser will prepare a cash flow forecast, often referred to as a A) direct market extraction. B) restricted appraisal report. C) pro forma. D) net operating income statement.
To apply the discounted free cash flow model, the analyst needs to estimate: Multiple Choice net cash flows from operations for each future period, starting one period from now. C) free cash flows for each future period, starting one period from now. free cash flows for approximately ten years as the present value of cash flows occurring beyond that point are insignificant. o o net cash flows from operations for approximately ten years as the present value of cash flows...
12. Given a profitable firm, depreciation: Multiple Choice Top of Form increases net income. increases net fixed assets. decreases net working capital. lowers taxes. has no effect on net income. 15. Which one of the following will increase the cash flow from assets for a tax-paying firm, all else constant? Multiple Choice An increase in net capital spending A decrease in the cash flow to creditors An increase in depreciation An increase in the change in net working capital A...
qCash flow from assets: 1-Group of answer choices 2-equals net income plus non-cash items. 3-can be positive, negative, or equal to zero. 4-equals operating cash flow minus net capital spending. 5-equals the addition to retained earnings. 6-equals operating cash flow minus the cash flow to creditors.
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January 30, 2014 Multiple Choice (2 Points each) 1. Over the past year, a firm decreased its current assets and increased its current liabilities. As a result, the firm's net working capital: a. had to increase b. had to decrease C. remained constant d. could have either increased, decreased or remained constant 2. Which one of these statements is correct? a. Depreciation has no effect on taxes b. Interest paid is a non-cash item c....
Determining Net Income from Net Cash Flow from Operating
Activities
Curwen Inc. reported net cash flow from operating activities of
$196,600 on its statement of cash flows for the year ended December
31. The following information was reported in the Cash Flows from
Operating Activities section of the statement of cash flows, using
the indirect method:
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $196,600 on its statement...
Complete the cash flow from Operating Activities
Additions to Net Income Decrease in accounts receivable Decrease in inventory Decrease in prepaid assets Increase in accounts payable Increase in accrued liabilities Deductions from Net Income Increase in accounts receivable Increase in inventory Increase in prepaid assets Decrease in accounts payable Decrease in accrued liabilities 450 $300 Cash Flow From Operating Activities Net Income $110 Net Cash Provided by Operating Activities 2011 80 115 Cash Flows From Investing Activities Income Statement For...
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $161,000 on its statement of cash flows for the year ended December 31. The following information was reported in the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method: Decrease in income taxes payable $3,100 Decrease in inventories 7,900 Depreciation 12,100 Gain on sale of investments 5,400 Increase in accounts payable 2,200 Increase...