Below is the Statement of Cash Flows for Strategema Inc. They have just finished their second yearBanco Financial, to approve loan financing. In addition to the cash flow statement provided, StrateCash flows from operating activities:Net incomeAdd: DepreciationLess:Increase in accounts receivableIncrease in inventoryIncrease in prepaid expensesDecrease in accounts payableSTRATEGEMA INC.Statement of Cash FlowsFor the Year Ended October 31, 2020Cash from operating activitiesCash flows from investing activities:Proceeds from sale of temporary investmentsPurchase of equipmentCash for investing activitiesCash flows from financing activitiesProceeds from issue of common sharesPayment of cash dividendsCash from financing activitiesDecrease in cashCash balance, November 1, 2019Cash balance, October 31, 2020Required: Answer the following questions:The Cash flow to total liabilities ratio is:e Net free cash flow is $$ 45,00024,500(18,000)(71.000)(5.500)(4.600)12,000(95,000)75,000(25,500)$(29.600)(83.000)49,500(63,100)58.000$ (5.100)(Enter to two 3 decimal places)2022/06/29 14:26

Cash flows refer to the inflows and outflows of cash and cash equivalents are termed as cash flows.…

Answered: Required: Answer the following…

Required: Answer the following questions: The Cash flow to total liabilities ratio is: Net free cash flow is $ (Enter to two 3 decimal places)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Below is the Statement of Cash Flows for Strategema Inc. They have just finished their second year
Banco Financial, to approve loan financing. In addition to the cash flow statement provided, Strate
Cash flows from operating activities:
Net income
Add: Depreciation
Less:
Increase in accounts receivable
Increase in inventory
Increase in prepaid expenses
Decrease in accounts payable
STRATEGEMA INC.
Statement of Cash Flows
For the Year Ended October 31, 2020
Cash from operating activities
Cash flows from investing activities:
Proceeds from sale of temporary investments
Purchase of equipment
Cash for investing activities
Cash flows from financing activities
Proceeds from issue of common shares
Payment of cash dividends
Cash from financing activities
Decrease in cash
Cash balance, November 1, 2019
Cash balance, October 31, 2020
Required: Answer the following questions:
The Cash flow to total liabilities ratio is:
e Net free cash flow is $
$ 45,000
24,500
(18,000)
(71.000)
(5.500)
(4.600)
12,000
(95,000)
75,000
(25,500)
$(29.600)
(83.000)
49,500
(63,100)
58.000
$ (5.100)
(Enter to two 3 decimal places)
2022/06/29 14:26

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