WorksheetsCashflow and income statement
Total questions: 15
Worksheet time: 8mins
What is the purpose of an income statement?
Calculate the bank balance
Calculate net assets
Calculate sales
Calculate net profit
How do you calculate net cash flow?
Balance brought forward + Cash Inflows
Inflows - Outflows
Total Cash available - Cash Outflows
Revenue - Cost of Goods Sold
What's the difference between cash and profit?
Cash is when money is tangible and profit is when it is intangible
Cash is on debit while profit is on credit
Money borrowed increases cash but not profit
Buying new machine increases cash but decreases profit
Which of the following are uses of cash flow forecasting?
The opportunity cost of spending time doing the forecast
It can help a business to get a bank loan
Inaccuracies caused by unexpected events
Being able to plan spending so you a can meet your debt obligations
It can decrease costs of goods sold to increase inventories
How do you calculate closing balance?
Total cash available + cash outflows
Opening balance + Net cash flow
Opening balance - Net cash flow
None of the above
How do you calculate for net profit?
Revenue - Cost of Goods Sold
Gross Profit + Total Expenses
Gross Profit - Total Expenses
Gross Profit + Cost of Goods Sold
In March, Martha sold 1500 slippers at $50 each. She has a total of $20,000 costs to make those slippers. Calculate her gross profit.
(a)
What is gross profit?
Revenue - Total Costs
Revenue + Variable Costs
Revenue - Cost of Sales
Revenue - Fixed Costs
Which are not in an income statement?
Taxes
Dividends
Shareholders
Debts
Expenses
Which one is not an expense?
Raw materials
Production costs
Commission received
Insurance
Gross Profit = $75,000 Expenses = $72,000. Calculate for net profit.
(a)
If Sales = $100,000 Cost of Goods = $25,000, the Gross Profit will be:
$75,000
$65,000
($15,000)
$55,000
Net Profit = $3,000 and government tax = $1,000 and dividends paid = $500. Calculate for retained profit.
(a)
What's the purpose of cash-flow forecasting?
Earn profit
Pay employee wages
Achieve growth
Rent, heating, and lighting
