Depreciation and amortization expenses are Part of current assets on the balance sheet After tax expenses that reduce a firm's cash flows Long term liabilities that reduce a firm's net worth Noncash expenses that cause a firm's after tax cash flows to exceed its net income Place the following items in order by their liquidity 1 2 3 4 Accounts receivable 1 2 3 4 Plant and equipment 1 2 3 4 Inventories 1 2 3 4 Cash Match the formula to its description A B C D E F G Balance sheet identity Read Answer Items for Question 13 A B C D E F G Net working capital Read Answer Items for Question 13 A B C D E F G Income statement equation Read Answer Items for Question 13 A B C D E F G CFOA Read Answer Items for Question 13 A B C D E F G CFNWC Read Answer Items for Question 13 A B C D E F G CFLTA Read Answer Items for Question 13 A B C D E F G CFI Read Answer Items for Question 13 Answer A CFOA CFNWC CFLTA B NWC current period NWC previous period C Total assets Total liabilities Total stockholder's equity D Long term assets current period Long term assets previous period E Net income Revenues Expenses F Total current assets Total current liabilities G EBIT Current taxes Noncash expenses DiazManufacturing,Inc reportsEBITof$168,000,currenttaxesof$44,000,anddepreciationandamortizationof$83,000 Whatistheircashflowfromoperatingactivities(CFOA) Suppose you start your own corporation when you are 25 years old and you work there until you retire 40 years later How many years' worth of your profits are taxed by the US Government if the average federal corporate income tax rate is 30 percent

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Depreciation and amortization expenses are: Part of current assets on the balance sheet. After-tax expenses that reduce a firm's cash flows. Long-term liabilities that reduce

Depreciation and amortization expenses are:

Part of current assets on the balance sheet.

After-tax expenses that reduce a firm's cash flows.

Long-term liabilities that reduce a firm's net worth.

Noncash expenses that cause a firm's after-tax cash flows to exceed its net income.

Place the following items in order by their liquidity.
- 1. 2. 3. 4.
Accounts receivable
- 1. 2. 3. 4.
Plant and equipment
- 1. 2. 3. 4.
Inventories
- 1. 2. 3. 4.
Cash

Match the formula to its description.

- A. B. C. D. E. F. G.	Balance sheet identity Read Answer Items for Question 13
- A. B. C. D. E. F. G.	Net working capital Read Answer Items for Question 13
- A. B. C. D. E. F. G.	Income statement equation Read Answer Items for Question 13
- A. B. C. D. E. F. G.	CFOA Read Answer Items for Question 13
- A. B. C. D. E. F. G.	CFNWC Read Answer Items for Question 13
- A. B. C. D. E. F. G.	CFLTA Read Answer Items for Question 13
- A. B. C. D. E. F. G.	CFI Read Answer Items for Question 13

Answer

A.	CFOA - CFNWC - CFLTA
B.	NWC_{current period}- NWC_{previous period}
C.	Total assets = Total liabilities + Total stockholder's equity
D.	Long-term assets_{current period}- Long-term assets_{previous period}
E.	Net income = Revenues - Expenses
F.	Total current assets - Total current liabilities
G.	EBIT - Current taxes + Noncash expenses

DiazManufacturing,Inc.reportsEBITof$168,000,currenttaxesof$44,000,anddepreciationandamortizationof$83,000.Whatistheircashflowfromoperatingactivities(CFOA)?

Suppose you start your own corporation when you are 25 years old and you work there until you retire 40 years later. How many years' worth of your profits are taxed by the US Government if the average federal corporate income tax rate is 30 percent?