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605-655 (Medium)|   Graphs|      
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Bunuel
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The Waterfall Chart below illustrates how various business activities 20 May 2025, 00:26
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The waterfall chart below illustrates the impact of various business activities on a company’s cash position over the course of a fiscal year. The company begins the year with €500,000 in cash. The chart displays a series of cumulative changes, both positive and negative, arising from seven business activities, ultimately leading to the year-end cash balance.

Positive values (e.g., Product Sales) indicate cash inflows, while negative values (e.g., Salaries) represent cash outflows.




Based on the information in the chart, the total contribution (in euros) from all cash inflow activities to the year-end cash balance is € , and the percentage of total cash outflows attributable to Salaries is closest to .

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The Waterfall Chart below illustrates how various business activities 21 May 2025, 06:21
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catinabox

Question, if we talk about 'net contribution' I'm inclined to think that it's only the portion exceeding expenses (e.g., 110). Why it's not simply written 'what is the contribution'? Is this ambiguity also expected on the exam?

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The Waterfall Chart below illustrates how various business activities 21 May 2025, 08:24
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I have made some edits to the overall question including the graph.
PietroCavallo
catinabox

Question, if we talk about 'net contribution' I'm inclined to think that it's only the portion exceeding expenses (e.g., 110). Why it's not simply written 'what is the contribution'? Is this ambiguity also expected on the exam?

Thanks
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The Waterfall Chart below illustrates how various business activities 26 May 2025, 05:17
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catinabox

The wording of this question is terribly ambiguous. Defientely not a GMAT-like question.
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The Waterfall Chart below illustrates how various business activities 29 May 2025, 08:30
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Bunuel
The Waterfall Chart below illustrates how various business activities affected a company's profit over the fiscal year. The chart begins with a Starting Profit of €500,000 and reflects cumulative gains and losses from seven different categories.

Each positive value (e.g., "Product Sales") increases profit, while each negative value (e.g., "Salaries") decreases it. The chart summarizes the following categories:




Based on the information in the chart, the net contribution of all income-related categories (those with positive values) to the company’s ending profit is € , while the percentage of the total negative impact that came from Salaries is closest to .
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Solution:

To find the net contribution from income-related categories, we add all the positive values:
€180,000 (Product Sales) + €70,000 (Service Income) + €40,000 (Operational Savings) + €20,000 (Tax Credit) = €310,000.
Correct answer: €310,000

To find the percentage of the total negative impact attributable to Salaries:
Total negative impact = €120,000 (Salaries) + €50,000 (Marketing) + €30,000 (Legal Fines) = €200,000.
Salaries account for €120,000 of this, which is (120,000 / 200,000) × 100 = 60%.
Correct answer: 60%
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The Waterfall Chart below illustrates how various business activities 03 Jun 2025, 06:12
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catinabox

How are we classifying income generating activities? Can't salaries/ marketing also be considered as income generating activities, as without them, income actually can't be generated?
Bunuel
Bunuel
The Waterfall Chart below illustrates how various business activities affected a company's profit over the fiscal year. The chart begins with a Starting Profit of €500,000 and reflects cumulative gains and losses from seven different categories.

Each positive value (e.g., "Product Sales") increases profit, while each negative value (e.g., "Salaries") decreases it. The chart summarizes the following categories:




Based on the information in the chart, the net contribution of all income-related categories (those with positive values) to the company’s ending profit is € , while the percentage of the total negative impact that came from Salaries is closest to .
Show Spoiler
Attachment:
GMAT-Club-Forum-w599nx6a.png

Solution:

To find the net contribution from income-related categories, we add all the positive values:
€180,000 (Product Sales) + €70,000 (Service Income) + €40,000 (Operational Savings) + €20,000 (Tax Credit) = €310,000.
Correct answer: €310,000

To find the percentage of the total negative impact attributable to Salaries:
Total negative impact = €120,000 (Salaries) + €50,000 (Marketing) + €30,000 (Legal Fines) = €200,000.
Salaries account for €120,000 of this, which is (120,000 / 200,000) × 100 = 60%.
Correct answer: 60%
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