Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

: Below is The Ranch Corporation's income statement and two balance sheets: The Ranch Corp The Ranch Corp Income Statement for Balance Sheet as at

image text in transcribed

: Below is The Ranch Corporation's income statement and two balance sheets: The Ranch Corp The Ranch Corp Income Statement for Balance Sheet as at 30 June period ending 30 June 2016 2016 2015 Net sales 100 Inventory 128 COGS 16 PPE 320 300 Depreciation 15 Total assets 332 308 Electricity expense 14 Interest expense 15 Long term loan liabilities 150 150 Taxable income 40 Contributed equity 44 Taxes 12 Retained profits 138 114 Net income 28 Total L and OE 332 308 44 Note: All figures are given in millions of dollars ($m). Which of the following statements about the financial year from 30 June 2015 to 30 June 2016 is NOT correct? 0 0 Select one: a. The increase in net working capital (ANWC) was $4m. b. The increase in net working capital was positive because in net terms, more inventory was bought rather than sold. c. Net capital expenditure (CapEx) was $35m. d. Net capital expenditure was positive because in net terms, more property, plant and equipment (PPE) was bought rather than sold. e. Firm free cash flow (FFCF or Cash flow from assets CFFA) was $34m. 0 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Foundations Of Business Analysis

Authors: M Douglas Berg

1st Edition

1465222030, 9781465222039

More Books

Students also viewed these Finance questions

Question

=+consider the relative merits of hire purchase and leasing;

Answered: 1 week ago

Question

Identify global safety and health issues.

Answered: 1 week ago

Question

Discuss health care in the global environment.

Answered: 1 week ago