Evaluation of Cash Flow Information An analysis of the financial statement data of Brown Company and Amber

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Evaluation of Cash Flow Information An analysis of the financial statement data of Brown Company and Amber Company resulted in the following ratio information:

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Brown Company and Amber Company each have 20,000 shares of common stock outstanding.

a. Compute the amount of cash provided by operations for each company. Which company has the larger dollar amount of cash provided by operations?

b. Compute the amount of total assets reported by each company. Which company has the larger amount of total assets?

c. Which company has the larger amount of debt outstanding? What amounts are reported by each company?

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Financial Accounting A Decision Making Approach

ISBN: 9780471328230

2nd Edition

Authors: Thomas E. King, Valdean C. Lembke, John H. Smith

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