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A company reported the following for the year: Net sales $ 500 Increase in accounts receivable 20 Decrease in accounts payable 40 Increase in inventory 30 Sale of new common stock 100 Repayment of debt 10 Depreciation 2 Net income 100 Interest expense on debt 5 The company’s cash flow from operations(CFO) and cash flow from investing(CFI) are closest to ; CFO CFI ①A. $12 $100 ②B. $12 $0 ③C. $92 $100

A. ①
B. ②
C. ③

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JME Construction always uses the percentage of completion method of recognizing revenue. During 2004 JME signs a contract in the amount of $10 million with the following data available:Costs incurred to date$2200000Billings to date $2000000Cash collected $1750000Total cost of project $8800000 How much gross profit should JME recognize for 2004

A. $ 300000.
B. $450000.
C. $ 200000.

An analyst gathered the following data about a company: 1000 common shares are outstanding(no change during the year). Net income is $ 5000. The company paid $ 500 in preferred dividends. The company paid $ 600 in common dividends. The average market price of their common stock is $ 60 for the year. The company had 100 warrants(for one share each) outstanding for the entire year exercisable at $50. The company’ s diluted earnings per share is closest to:

A. $3.83.
B. $4.42.
C. $4.55.

Which of the following statements about accounting procedures and their impact on the statement of cash flows is least valid All else equal:

A. a nonprofitable company that uses LIFO to account for inventory will have higher total cash flow than a nonprofitable company that uses FIFO during a period of rising prices.
B. a company that finances through common stock issues may have the same cash flow from financing(CFF) as a firm that issues debt.
C. the cash flow from operations(CFO) for a company that has a capital lease will be overstated compared to that of a firm that has an operating lease.

An examination of the cash receipts and payments of Xavier Corporation reveals the following:Cash paid to suppliers for purchase of merchandise $5000Cash received from customers 14000Cash paid for purchase of equipment22000Divedends paid 2000Cash received from issuance of preferred stock 10000Interest received on short-term investments 1000Wages paid 4000Repayment of loan to the bank5000Cash from sale of land 12000 Xavier’ s cash flow from financing(CFF) and cash flow from investing(CFI) will be: CFF CFI ①A. $3000 $12000 ②B. $10000 $12000 ③C. $3000 $10000

A. ①
B. ②
C. ③

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