ACCT 2302 Student Questions practice test #3

Question 1

Calculate free cash flow:
Net cash provided by operating activities: $300
Net cash used in investing activities: ($120)
Capital expenditure: ($140)
Net change in cash: $400
Dividend Paid: $50

110
(10)
560
130

Answer 1

110

Question 2

Formula for free cash flow (FCF)

Answer 2

Net cash – capital expenditure – dividend

Question 3

Which of the following is the best use of evaluation on the utilization of a constrained resource?

A) The one which will increase our contribution margin at the constraint

B) Fixed cost is always the best use

C) It doesn’t matter, either works

D) The one which will decrease our contribution margin at the constraint

Answer 3

A) The one which will increase our contribution margin at the constraint

Question 4

BOM + Started = EOM + Transferred

Answer 4

BOM + Started = EOM + Transferred