CASH FLOW STATEMENT

In this statement, Net Income is:

B) The same bottom-line figure from the Income Statement, used as the starting point

Depreciation & Amortization (D&A) is added back because:

B) It's a non-cash accounting charge — no actual cash left the company

Stock-Based Compensation (SBC) is added back because:

B) It's company stock given to employees instead of cash — no cash left the company C) It's a tax credit D) It's a loan repayment

"Other Adjustments" refers to:

B) Any other non-cash item needed to get from profit to real cash

Change in Receivables being a cash outflow means:

B) Customers now owe more money than before, so cash hasn't been collected yet

Changes in Inventories reflects:

A) How much cash was spent buying/holding unsold product

Changes in Accounts Payable increasing usually:

B) Frees up cash, since paying suppliers is being delayed

Changes in Accrued Expenses reflects:

A) Changes in costs incurred but not yet paid in cash, like unpaid wages

"Changes in Other Operating Activities" covers:

B) Small working-capital changes not captured in the other operating lines

Operating Cash Flow (CFO) is:

A) Cash from running the core, everyday business

Operating Cash Flow Growth measures:

A) How CFO changed vs. a year ago

Capital Expenditures (CapEx) is cash spent:

B) Buying or upgrading physical assets like equipment and buildings

Purchases of Investments is cash spent:

A) Buying stocks, bonds, or other financial investments

Proceeds from Sale of Investments is:

B) Cash received from selling investments the company owned

Payments for Business Acquisitions is cash spent:

A) Buying other companies

"Other Investing Activities" covers:

B) Other cash spent/received on long-term investing not listed elsewhere

Investing Cash Flow (CFI) totals:

B) All cash spent/received on long-term investments and asset purchases/sales

Long-Term Debt Issued is cash brought in by:

B) Borrowing new long-term money, like issuing a bond

Long-Term Debt Repaid is cash paid to:

B) Pay back long-term loans or bonds

Net Long-Term Debt Issued (Repaid) equals:

A) Debt Issued minus Debt Repaid

Issuance of Common Stock is cash brought in by:

A) Selling new shares to investors

Repurchase of Common Stock is cash spent:

B) Buying back the company's own shares from investors

Net Common Stock Issued (Repurchased) equals:

A) Issuance minus Repurchase of stock

Common Dividends Paid is:

B) Cash paid out to shareholders

"Other Financing Activities" covers:

B) Other cash flows related to funding the company not listed elsewhere

Financing Cash Flow (CFF) totals:

B) Cash flows related to debt, stock, and dividends combined

Net Cash Flow equals:

A) Operating + Investing + Financing Cash Flow

Free Cash Flow (FCF) equals:

A) Operating Cash Flow minus Capital Expenditures

Free Cash Flow Growth measures:

A) How FCF changed vs. a year ago

FCF Margin is:

A) FCF divided by Revenue

Free Cash Flow Per Share is:

A) FCF divided by shares outstanding

Levered Free Cash Flow is FCF:

B) After accounting for interest payments/debt obligations — cash available to stockholders

Unlevered Free Cash Flow is FCF calculated:

B) As if the company had no debt at all, before interest payments