27. Laborto Inc. has an accrual basis net loss of $20,000 and the following related items:

Depreciation expense $11,000

Account receivable decrease $8,000

Inventory increase $6,000

Accounts payable increase $3,000

Accrued liabilities increase $5,000

How much is Laborto's net cash flow from operating activities?

a. $1,000

b. $-13,000

c. $35,000

d. $-4,000

35. Traynham Tractors has a ROS of 16.4% and Adel Automative has an ROS of 18.3%. Which of the following statements is true?

a. Adel Automotive is able to bring its products to market more efficiently than Traynham Tractors

b. Adel Automotive reported more dollars of profit than Traynham Tractors

c. Adel Automotive has more of the firm financed with debt than Trayham does

d. Traynham Tractors would likely be able to borrow money at a lower interest rate than would Adel Automotive.