An analyst gathers the following information: Net income $100 Decrease in accounts receivable 30 Depreciation 25 Increase in inventory 17 Increase in accounts payable 10 Decrease in wages payable 5 Increase in deferred taxes 17 Sale of fixed assets 150 Purchase of fixed assets 340 Profit from the sale of fixed assets 5 Dividends paid out 35 Sale of new common stock 120 Based on the above information, the company’s cash flow from operations is:
A. $155.
B. $165.
C. $175.
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Given the following information, what is the adjustment to net income when calculating cash flow from operations using the indirect method Increase in accounts payable of $ 25. Sold one share of stock for $15. Paid dividends of $10 to shareholders. Depreciation expense of $100. Increase in inventory of $ 20.
A. $50.
B. $95.
C. + $105.
To convert an indirect statement of cash flows to a direct basis, the analyst would:
A. add decreases in accounts receivables to net sales.
B. subtract customer cash advances from net sales.
C. subtract increases in accounts payable from the cost of goods sold.
Does the Financial Accounting Standards Board require firms to disclose information about operating leases and detailed information about defined benefit pension plans in the financial statement footnotes Operating lease information Defined benefit pension plans ①A. Yes No ②B. Yes Yes ③C. No Yes
A. ①
B. ②
C. ③
Bentlom Company’ s common sized financial statements show the following information: Earnings after taxes 15 % Current liabilities 20% Equity 45 % Sales $ 800 Cash 10% Total assets $ 2000 Accounts receivable 15% Inventory 20% Bentlom’ s long-term debt-to-equity ratio and current ratio are closest to. Long-term debt-to-equity ratio Current ratio ①A. 77.8 % 2.25 ②B. 98.2% 2.50 ③C. 98.2% 2.25
A. ①
B. ②
C. ③