CONNECT WITH LEARNSMART FOR BODIE: ESSE
11th Edition
ISBN: 2819440196246
Author: Bodie
Publisher: MCG
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Chapter 14, Problem 7PS
Cash flow from operating activities includes:
a. Inventory increases resulting from acquisitions.
b. Inventory changes clue to changing exchange rates.
c. Interest paid to bondholders.
d. Dividends paid to stockholders.
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Revaluation surplus of a company will be shown in
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c.
It will not be shown anywhere
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Which of the following effect is Correct for the payment of dividend by the company on Irredeemable preference shares?
a.
Increase Bank balance
b.
Increase Current liability
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Q1: MULTIPLE-CHOICE QUESTIONS - Cash Flow Statement
1. While calculating cash flow from operating activities which will be added :
(A) Decrease in Bills Payable
(B) Increase in Creditors
-(C) Increase in Inventory
(D) Increase in Trade Receivables
Use given information to fill out missing boxes correctly
Chapter 14 Solutions
CONNECT WITH LEARNSMART FOR BODIE: ESSE
Ch. 14 - Prob. 1PSCh. 14 - Prob. 2PSCh. 14 - The Crusty Pie Co., which specializes in apple...Ch. 14 - The ABC Corporation has a profit margin on sales...Ch. 14 - A company’s current ratio is 2. If the company...Ch. 14 - Cash flow from investing activities excludes:...Ch. 14 - Cash flow from operating activities includes:...Ch. 14 - Prob. 8PSCh. 14 - Prob. 9PSCh. 14 - Prob. 10PS
Ch. 14 - Prob. 11PSCh. 14 - Use the DuPont system and the following data to...Ch. 14 - A firm has an ROE of 3 , a debt/equity ratio of...Ch. 14 - A firm has a tax burden ratio of 0.75 , a leverage...Ch. 14 - A11 analyst gathers the following information...Ch. 14 - Here are data On two Firms: LO142 Equity ($...Ch. 14 - Prob. 1CPCh. 14 - Which of the following best explains a ratio of...Ch. 14 - Use the Financial statements for Chicago...Ch. 14 - Prob. 4CPCh. 14 - The information in the following table comes from...Ch. 14 - Scott Kelly is reviewing Master Toy’s financial...Ch. 14 - The DuPont formula defines the net return on...Ch. 14 - Go to finance.yahoo.com to find information about...Ch. 14 - Answer the following questions for these two toy...Ch. 14 - Prob. 3WM
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- The comparative statements of Cullumber Company are presented here. Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses. Interest expense Income before income taxes Assets Current assets Income tax expense Net income Cash Debt investments (short-term) Accounts receivable Inventory CULLUMBER COMPANY Income Statements For the Years Ended December 31 Accounts payable Income taxes payable Total current liabilities Bonds payable Total current assets Plant assets (net) Total assets Total liabilities Stockholders' equity Common stock ($5 par) Retained earnings Total stockholders' equity Liabilities and Stockholders' Equity Current liabilities $172,800 $157,032 46,980 237,600 219,780 202,392 457.380 313.200 338,472 45,360 Total liabilities and stockholders' equity $1.109.052 216.000 418,392 324,000 CULLUMBER COMPANY Balance Sheets December 31 178,632 651.672 502.632 2022 $921.024 $1,993,400 1,107,000 886,400 540,000…arrow_forwardWhich one of the following is a source of cash? A. newly issued stocksB. decrease in notes payable C. paying dividendD. purchased a new equipmentarrow_forwardam. 104.arrow_forward
- The current ratio is O a solvency measure that indicates the margin of safety for bondholders O calculated by dividing current liabilities by current assets calculated by subtracting current liabilities from current assets O used to evaluate a company's liquidity and short-term debt-paying ability Question 19 On the statement of cash flows, a $9,000 gain on the sale of fixed assets would be O added to net income in converting the net income reported on the income statement to cash flows from operating activities O deducted from net income in converting the net income reported on the income statement to cash flows from operating activities O deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends O added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividendsarrow_forward24. Changes in balance sheet accounts are necessary fora.A typical ratio analysis.b.Pro forma balance sheet construction.c.Statement of cash flows construction.d.Profit and loss analysis.e.Pro forma income statement construction. 25. Which of the following would be classified as a use of cash?a.An increase in accounts payable.b.A decrease in marketable securities.c.A decrease in accounts receivable.d.An increase in retained earnings.e.An increase in inventories.arrow_forwardThe following financial statements apply to Finch Company: Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets. Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (43,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 2 $219, 100 124,400 101, 100 19,700 17,700 10,000 9,000 1,700 1,700 20, 100 16,900 175,900 146,400 $ 43,200 $36,400 $ 4,800 $ 7,200 2,800 2,800 36,600 101,600 3,900 149,700 106,400 21,500 $277,600 $38,500 15,800 Year 1 $182, 800 54,300 64,300 118,600 114,900 44, 100 159,000 $277,600 31, 100 94, 100 2,900 138, 100 106,400 0…arrow_forward
- The retirement of long-term debt by the issuance of common stock should be presented in a statement of cash shows as a:arrow_forwardWhich of the following represents a source of cash in the investing section? A. sale of investments B. depreciation expense C. decrease in accounts receivable D. decrease in bonds payablearrow_forwardClassification of Cash Flows The following are several items that might be disclosed on a companys statement of cash flows presented using the indirect method. a. Net income b. Depreciation expense c. Issuance of common stock d. Loss on disposal of equipment e. Purchase of a building f. Decrease in accounts payable g. Converted bonds into common stock h. Sale of long-term investment i. Payment of interest j. Increase in inventory Required: 1. Indicate whether each item should be classified as a cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, or noncash investing and financing activity. 2. CONCEPTUAL CONNECTION Why is the proper classification of cash flows important?arrow_forward
- Sources of cash include a. profitable operations. b. the issuance of long-term debt. c. the sale of long-term assets. d. the issuance of capital stock. e. All of these.arrow_forwardUnder the indirect method of determining net cash provided by operating activities on the statement of cash flows, which of the following would be subtracted from net income? Question 23 options: A decrease in accounts receivable. An increase in accrued liabilities. A decrease in accounts payable. An increase in dividend payments to stockholdersarrow_forwardFind Out : (a)Earnings per share(b)Return on common stockholders' equity in %(c)Return on assets in %(d)Current ratio in :1(e)Accounts receivable turnover in times(f)Average collection period in days(g)Inventory turnover in times (h)Days in inventory in days (i)Times interest earned in times (j)Asset turnover in times (k)Debt to assets ratio in % (l)Free cash flowarrow_forward
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Dividend explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=Wy7R-Gqfb6c;License: Standard Youtube License