CashflowSME1

1-Which of the following statements about cash flow is correct?

• a. A withdrawal of equity is a source of cash

• b- An increase in current liabilities is a source of cash

• C- An increase in receivables is a source of cash

2-Which of the following figures do you need to calculate cash flow from the operating activities of an SME client during the certain period?

• a. Changes in inventories and receivables during this period

• b. Acquisition or sale of fixed assets

• c. Net profit + depreciation (if any) for a given period

• d. Answers (a) and (c)

3-The following are cash flow levers except

• a- Change in margins

• b-Terms of trade

• c-Advertising campaign

• d- Purchase and sales of fixed asset

4-Improving the cash flow using terms of trade requires

• a-       Increasing the inventories days on hand

• b-       Increasing the receivables days on hand

• C-       Increasing the payables days on hand

• d-       Increase the marketing expenses

5-Changes in margins affecting cash flow can be measured

• a-       Monitoring the gross earnings & EBITDA

• b-       Monitoring the ratio between COGS and sales

• c-       Answer a & b

• d-       Monitoring the leverage ratio