Reference no: EM132721630

Problem 1: What is the primary purpose of the statement of cash flow?

Select one:

a. To provide information about the cash flow from operations for a period

b. To provide information about firm profitability

c. To provide pro forma information that helps users predict future cash flows

d. To provide information about where a company's cash comes from and where it goes

Problem 2: Partial financial results are presented below for McDonald's Restaurant:

Operating profit $435,000

Cash flow from: Operations 115,000

Investing 125,600

Financing (54,000)

What cash management actions most likely occurred during the year?

Select one:

a. Hamburger Restaurant used cash from operations and from selling long-term assets to pay dividends.

b. Hamburger Restaurant used cash from bank loans or from selling stock and from operations to buy long-term assets.

c. Hamburger Restaurant used cash from bank loans or from selling stock to fund operations and to buy long-term assets.

d. Hamburger Restaurant used cash from operations to buy long-term assets and to repay debt.