1. 1

    What is the main reason that the Direct Cash Flow Statement is recommended when building a financial model?

  2. 2

    In the Indirect Cash Flow Statement, a reconciliation is performed between the Income Statement and Operating Cash Flows. Certain items are added back (e.g. Interest Expense, Tax Expense) and then variants are deducted (e.g. Interest Paid, Tax Paid). What is the primary reason why depreciation is added back but then no corresponding deduction is made?

  3. 3

    To calculate movements in working capital, which of the following approaches will not calculate the correct values?