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10. A company had net income of $252,000, Depreciation $1 year, Accounts Receivable and Inventory in Prepaid Expenses and Accounts Payable decreased by $2,000 is

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10. A company had net income of $252,000, Depreciation $1 year, Accounts Receivable and Inventory in Prepaid Expenses and Accounts Payable decreased by $2,000 is $26,000. During the $40,000, respectively. respectively ie was also a loss on the sale of equipment of $3,000. How much cash was provided by operating activities? a. $217,000. b. $224,000. c. $284,000 d. $305,000 11. A corporation uses the indirect method for preparing the Statement of Cash Flows. A fixed asset has been sold for $25,000 representing a gain of $4,500. The value in the operating activities section regarding this event would be a. $25,000 b. ($4,500) c. $29,500 d. $4,500 Free cash flow is cash from operations, less cash for a. dividends and cash for fixed assets needed to maintain productivity b. dividends and cash to redeem bonds payable c. 12. fixed assets needed to maintain productivity d. fixed assets needed to maintain productivity, and cash to redeem bonds payable The percentage analysis of increases and decreases in individual items in comparative financial statements is called a. vertical analysis b. solvency analysis c. profitability analysis d. 13. I analysis Which of the following below generally is the most useful in analyzing companies of different sizes 14. a. comparative statements b. common-sized financial statements c. price-level accounting d. audit report One reason that a common-size statement is a useful tool in financial analysis is that it enables the user to 15. a. judge the relative potential of two companies of similar size in different industries. b. determine which companies in a single industry are of the same value. c. determine which companies in a single industry are of the same size. make a better comparison of two companies of different sizes in the same industry. d

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