Business Financial Planning

Which of the following actions would most likely INCREASE a company's free cash flow?

• Reduce CapEx
• Shorten average payment period
• Increase inventory
• Increase credit term to customers

If you forecast pro-forma financial statements of a company and find that A > L + E, this means…

• The company needs additional capital
• The company's growth is too conservative
• The company should pay more dividends
• The company can afford to pay back it loan

Based on this year's pro-forma financial statements, the company's cost of goods sold expense can be characterized as…

• Fully variable cost

• Fully fixed cost

• Mixed cost (part-fixed, part-variable)

If this year's sales actually decreased by 10%, the company's net profit would…

• Decrease by more than 10%

• Decrease by 10%

• Decrease by less than 10%

• Not change at all

From analysis of the company's capital (net op working cap and net long-term assets) efficiency, it can be concluded that…

• NOWC efficiency increased while NLTA efficiency decreased

• NOWC efficiency decreased while NLTA efficiency increased

• Both NOWC efficiency and NLTA efficiency increased

• Both NOWC efficiency and NLTA efficiency decreased

Based on ACP, what is the most likely action that the company took between last year and this year?

• It started new B2G business with long credit term

• It extended credit term to customers

• It started selling more B2B and less B2C

• It expedited the receivable collection process

How much investment (CapEx) did the company make this year?

• 60

• 40

• 20

• 460

How much depreciation expense did the company have this year?

• 40

• 60

• 20

• 200

How much free cash flow did the company make this year?

• 84

• 56

• 64

• 72

The company made a dividend payment this year. How much dividend did it make?

• 22

• 52

• 15

• 30