What is meant by cash and cash equivalents

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Reference no: EM132351246

Questions -

1. What is meant by cash and cash equivalents?

2. Name and explain the components in the cash flow statement?

3. Explain the uses of vertical, horizontal analysis and industrial analysis?

4. Explain the usefulness of liquidity ratios, profitability and solvency?

Case 1 -

 

2016

2015

Cash

9.650

5.350

AR

9.100

11.700

Land

9.000

13.000

Building

35.00

35.000

Acc. Depreciation

-7.500

5.000

Total

55.250

60.050

Average Payable

6.185

15.550

Shareholder's Eq.

37.500

34.500

Retained Earning

11.565

10.000

Total

55.250

60.050

 

Net income

12.815

Dividend

11.250

Land Sales

2.950

The questions are:

a. How to make cash flow statements per 2016 with indirect methods?

b. Calculate how much is the Free Cash Flow?

Reference no: EM132351246

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