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7561: Classify the following as "stocks", in/outflows, or change in in/outflows: sales, trade receivables, change in trade receivables, increase in dividends, financial expense, increase in sales, EBITDA.

a) Stocks
b) In/Outflows
c) Change in In/Outflows
d) Options are not provided.

1 Answer

3 votes

Final answer:

Sales and financial expense are in/outflows; trade receivables are stocks; change in trade receivables and increase in sales indicate a change in in/outflows; EBITDA is a stock; increase in dividends is a change in in/outflows.

Step-by-step explanation:

To classify the items provided by the student: sales, trade receivables, change in trade receivables, increase in dividends, financial expense, increase in sales, EBITDA, we need to determine whether they represent stocks, in/outflows, or a change in in/outflows.

  • Sales and financial expense are considered in/outflows as they represent the money coming into or going out of the business.
  • Trade receivables are a stock, which indicates the amount of money owed to the company by its customers at a point in time.
  • Change in trade receivables and increase in sales reflect a change in in/outflows, showing how these figures have increased or decreased over a period.
  • EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) can be considered a stock as it represents a company's performance at a point in time.
  • Finally, an increase in dividends could be seen as a change in in/outflows, as dividends are paid out from the company's profits.

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