41. INTRODUCTION TO FINANCIAL STATEMENT MODELING QUESTIONS WITH CORRECT ANSWERS 2026

41. INTRODUCTION TO FINANCIAL STATEMENT
MODELING QUESTIONS WITH CORRECT
ANSWERS 2026
Cash Flows from Operating Activities - CORRECT ANSWER -
The section of the statement of cash flows that reports the cash transactions affecting the determi
nation of net income



Forecast Composition:

- Net income

- Share based compensation

- Working capital

- Depreciation and Amortization



Cash Flows from Investing Activities - CORRECT ANSWER -
Cash inflows and outflows related to the acquisition or sale of productive facilities and investments
in the securities of other companies



Forecast Composition:

- CAPEX



Cash Flows from Financing Activities - CORRECT ANSWER -
The section of the statement of cash flows that reports cash flows from transactions affecting the
equity and debt of the business



Forecast Composition:

- Share repurchase and issuance

- Dividends

- Debt issuance and repayment



Income Statement Forecast Process - CORRECT ANSWER -Forecast Process in Order:

1) Revenue Forecast