1.The balance sheet of Tech Track reports total assets of $400,000 and $500,000 at the beginning and end of the year, respectively. Sales revenues are $1,080,000($800,000 in the previous year), net income is $40,000, and net cash flows from operating activities are $50,000. How does Tech Track's asset turnover compare to the industry average of 2.4 times?

a. Better.

b. Worse.

c. Same as.

d. Cannot be determined with the data provided.

2.The balance sheet of Tech Track reports total assets of $400,000 and $500,000 at the beginning and end of the year, respectively. Sales revenues are $1.1 million ($0.8 million in the previous year), net income is $40,000, and net cash flows from operating activities are $50,000. How does Tech Track's cash return on assets compare to the industry average of 10%?

a. Better.

b. Worse.

c. Same as.

d. Cannot be determined with the data provided.

3.In the operating activities section of the statement of cash flows, we start with net income when using:

a.The direct method.

b.The indirect method.

c.Both the direct and the indirect method.

d. Neither the direct nor the indirect method.

4.During the year, Next Tec Corp. had the following cash flows: receipt from customers, $10,000; receipt from the bank for long-term borrowing, $6,000; payment to suppliers, $5,000; payment of dividends, $1,000, payment to workers, $2,000; and payment for machinery, $8,000. What amount would be reported for investing net cash flows on the Statement of Cash Flows?

a. $5,000.

b. $2,000.

c. $6,000.

d. ($8,000).

5.All classifications on the Balance Sheet have a general relationship with sections identified on the Statement of Cash Flows. Indicate which relationships are correctly identified in the table below.

#	Classification on the Balance Sheet	Section on Statement of Cash Flows
I	Bonds Payable	Financing
II	Equipment	Operating
III	Common Stock	Financing
IV	Accounts Payable	Operating
V	Accounts Receivable	Operating

a. IV, V.

b. I, II, III.

c. I, III, IV, V.

d. All of these.