1. Cash outflows related to purchases of inventory are reflected as part of __________ on the Statement of Cash Flows.

Question 1 options:

A	Net cash provided by/(used in) OPERATING activities
B	Net cash provided by/(used in) INVESTING activities
C	Net cash provided by/(used in) FINANCING activities

2. Cash inflows from sales of investments will appear in the ___________ section on the Statement of Cash Flows.

Question 2 options:

A	Investing
B	Financing
C	Operating

3. If a company reports a 10% profit margin percentage, this means that the company is earning 10 cents of profit per dollar of sales.

Question 3 options:

A	True
B	False

4 Nabo Corporation reports the following balances:

How much Cash did Nabo pay for inventory in 2023?

Question 4 options:

A	$167,500
B	$152,500
C	$150,000
D	$132,500

5. Cash outflows related to dividend payments to shareholders will appear in the ___________ section on the Statement of Cash Flows.

Question 5 options:

A	Operating
B	Financing
C	Investing

6. Pura Company reports Insurance Expense of $230,000 on its 2023 Income Statement. Pura's Balance Sheet shows Insurance Payable of $25,000 as of 12/31/23 and $35,000 as of 12/31/22. How much Cash did Pura pay for insurance in 2023?

Question 6 options:

A

$230,000

B

$220,000

C

$250,000

D

$240,000

1. If a company prepares an Indirect Method Statement of Cash Flows, which of the following items is a proper adjustment to net income to arrive at cash flow from operating activities:

Question 7 options:

	Adding Gains from Sales of Investments
	Adding Bad Debt Expense
	Adding Gains from Sales of PP&E

7. If Company A has a PE ratio of 20 and Company B has a PE ratio of 80, investors expect Company A to grow more in the future than Company B.

Question 8 options:

A	True
B	False

8. Pura Company reports Insurance Expense of $230,000 on its 2023 Income Statement. Pura's Balance Sheet does not show balances for Insurance Payable or Prepaid Insurance. How much Cash did Pura pay for insurance in 2023?

Question 9 options:

A	$210,000
B	$220,000
C	$230,000
D	$240,000

9. Nabo Corporation reports the following balances:

10. How much Cash did Nabo collect from customers in 2023?

Question 10 options:

A	$290,000
B	$285,000
C	$302,500
D	$277,500

\begin{tabular}{|lcc|} \hline \multicolumn{1}{|c}{} & As of & As of \\ & 12/31/23 & 12/31/22 \\ \hline Accounts Receivable & 40,000 & 35,000 \\ \hline Inventory & 80,000 & 70,000 \\ \hline Accounts Payable & 60,000 & 67,500 \\ \hline Unearned Revenue & 20,000 & 27,500 \\ \hline & & \\ \hline & Year & Year \\ & ended & ended \\ & 12/31/23 & 12/31/22 \\ \hline Sales & 290,000 & 250,000 \\ \hline Cost of Goods Sold & 150,000 & 115,000 \\ \hline \end{tabular} \begin{tabular}{|lcc|} \hline \multicolumn{1}{|c}{} & As of & As of \\ & 12/31/23 & 12/31/22 \\ \hline Accounts Receivable & 40,000 & 35,000 \\ \hline Inventory & 80,000 & 70,000 \\ \hline Accounts Payable & 60,000 & 67,500 \\ \hline Unearned Revenue & 20,000 & 27,500 \\ \hline & & \\ \hline & Year & Year \\ & ended & ended \\ & 12/31/23 & 12/31/22 \\ \hline Sales & 290,000 & 250,000 \\ \hline Cost of Goods Sold & 150,000 & 115,000 \\ \hline \end{tabular}