FINALS EXAM – FINMAN

1. What is Free Cash Flow? (5 points)

2. What are the 3 activities in the Statement of Cashflow? Explain. (15 points)
3. What are the three information sources to prepare Statement of Cash flows? (10 points)
4. The following are derived from the Statement of Cash Flows of the STI Company. (5 points)

The STI Company

Statement of Cash Flows
For the year ended December 31, 2XXX

Cash provided by operating activities P1,000,000

Cash flows from investing activities
Additions to property, plant, and equipment P (130,000)
Purchase of Investments P (2,000,000)
Sale of Investments 1,500,000
Acquisitions of companies (500,000)
Other (20,000)
Cash used by investing companies (800,000)
Cash paid for dividends (450,000)

Required:
a. Compute for STI Company free cash flow.

Total: 35 points