Tutorial 4

An increase in net PPE belongs to which dimension of the cash flow statement and how does it impact that dimension?

• Decrease in CFO

• Decrease in CFF

• Decrease in CFI

• Increase in CFF

Depreciation always gets added back into CFO

• True

• False

Question from previous topic: If my EBT is at 130 and I have an interest expense of 30 and the corporate tax is set at 30%, what is my net income?

• 130

• 91

• 121

• 70

My current liabilities have increased, how has CFI changed?

• It has gone up

• It has gone down

• It has stayed at the same level

• Not enough information

If Current Liabilities and Total Liabilities have increased throughout the year and I don't have any proceeds from the sale of assets, how was CFF impacted? Assume CL is not equal to TL

• It has gone up

• It has gone down

• It has stayed at the same level

• Not enough information