Question
A company reports the following information from the statement of cash flows: Net cash provided by operating activities $50 million Net income $10 million Net
A company reports the following information from the statement of cash flows:
Net cash provided by operating activities $50 million Net income $10 million Net cash provided by investing activities $600 million Net cash used by financing activities ($30 million)
Which line item provides a signal that the company may have cash flow problems? A.)net income. B.)net cash provided by operating activities C.)net cash used by financing activities D.)net cash provided by investing activities.
2.)
Bryanwood Company reports the following data:
Percentage Change from 2016 to 2017 | |
Sales | 11% |
Cost of Goods Sold | 8% |
Gross Profit | 12% |
Operating Expenses | 2% |
Based on the above information, what can be said about the company's business strategy?
A.)The company has fewer sales in 2017 than 2016.
B.)The company has successfully undertaken some cost-cutting measures for operating expenses.
C.)The company has reduced cost of goods sold.
D.)The company has lost control of operating expenses.
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