How is free cash flow calculated? (Difficulty: Moderate)

Which of the following ratios is the cash liquidity ratio? (Difficulty: Moderate)

Which type of accounts manipulation mainly consists in a reduction of the variance of the profit? (Difficulty: Moderate)

A growing enterprise is generally expected to report: (Difficulty: Moderate)

A business entity that shows a positive cash flow from operations, a negative cash flow from investing and a negative cash flow from financing is: (Difficulty: Moderate)

Ann Capella is a retailer who rents her fully furnished store. Customers pay their purchase on the average after 30 days. A. Capella pays her suppliers very regularly but no sooner than 60 days of receipt of their invoice. Monthly sales hold steady at 100 units at 5 CU each. The supplier provides the merchandise at 3 CU per unit. The firm was created by A. Capella’s great-grand-father 100 years ago and has never ceased operating. By how much will the net amount of cash received and disbursed in January X1 differ from the amount of income recognized in that month? The retailer closes it books on 31 July each year. (Difficulty: Moderate)

Sonata is a retail business entity with a gross margin of 5% of sales revenue. Sonata owns the walls of the store and the furniture and fixtures. Which of the following actions is the least risky and the most likely to help Sonata increase the amount of its (currently positive) cash flow from operations? Assume that if no action is mentioned about one component of the business model, it means it remains unchanged from the status quo. Each option is independent of the others. (Difficulty:Moderate)

A business entity has no interest bearing debt. It reports, for a complete accounting period, a cash flow from operations at 20% of sales revenue, a cash flow from investing representing an outflow of 40% of the cash flow from operations. Half of the cash outflow for investments was financed through the issuance of new shares for cash. No dividends were paid. The gross margin ratio is 45%, the net profit at 210 CU represents a third of the gross margin. If the closing cash balance was 170 CU, what was the opening cash balance. (All figures are in CU). (Difficulty: Difficult)

A business entity has no interest bearing debt. It reports, for a complete accounting period X1, a cash flow from operations at 20% of sales revenue, a cash flow from investing representing an outflow of 60% of the cash flow from operations. The cash outflow for investments was entirely covered through the issuance of new shares for cash. No dividends were paid. The gross margin ratio is 60%, the net profit at 180 CU represents a fifth of the gross margin. There were no changes in the balances of any of the current assets or current liabilities on the balance sheet during the period. What was the amount of the depreciation expense in X1? (Difficulty: Moderate)

A business entity generated a cash flow from operations of 700 in X1, 600 in X2 and 500 in X3. The cash outflow from investing to maintain competitiveness was 400 in X1, 450 in X2 and unknown in X3. No other investments were carried out in any of the three years. Cash flow available in X3 turned out to be lower than what it had been in X2 by twice the amount it had decreased between X1 and X2. The cash inflow from financing (obtained through the issuance of ten-year “zero bonds”, i.e. bonds for which interest and principal are paid only at maturity, with an interest rate of 5%) was 200 in X1, 350 in X2 and 650 in X3. Opening cash in X1 was 1000. Which of the four alternatives below is coherent with these facts and these facts alone. (All figures are in CU). (Difficulty: Moderate)