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Problem 1: Which of the following will cause a decrease in cash in the financing activities section of the statement of cash flows? Option 1: Payment of cash dividend Option 2: Issuance of treasury stock Option 3: Receipt of cash dividend Option 4: Stock split Option 5: Payment of interest on notes payable
Problem 2: Stock splits would appear in the statement of cash flows as:
Option 1: An increase in cash in the investing activities section Option 2: A decrease in cash in the investing activities section Option 3: An increase in cash in the financing activities section Option 4: A decrease in cash in the financing activities section Option 5: Does not appear in the statement of cash flows
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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