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ThisIsMyBiz Inc. has been your business for the past several years. You have put together...

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Accounting

ThisIsMyBiz Inc. has been your business for the past several years. You have put together your cash flow statements for the past 3 years to get a better idea of how your business is managing cash flow.

Year ending December 31 2021 2020 2019
Cash flow from operations 5,000 -5,000 -25,000
Cash flow from investing -10,000 -25,000 -50,000
Cash flow from financing 35,000 75,000 150,000
Net change in cash 30,000 45,000 75,000
Cash, beginning of year 120,000 75,000 0
Cash, end of year 150,000 120,000 75,000
Profit (Loss) for the year 1,000 (8,000) (35,000)

Question 1: Which life cycle stage was the business most likely in 2019?

a) start up b) growth c) either growth or start up d) maturity e) decline

Question 2: Which life cycle stage was in by 2021?

A) either maturity or growth b) growth c) maturity d) start up e) decline

Question 3: Cash flow from investing has become less negative in 2021, which of the following transactions can cause investing cash flow to increase?

a) lower depreciation expense

b) receiving from contributions

c) purchase long lived assets

d) borrow from bank

e) lower dividends

f) disposal of long lived assets

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