PLEASE ANSWER ALL 4 MULTIPLE CHOICE QUESTIONS

of cash reported in the section of the statement of cash flows. Long-term investments increased during the year. This is a Use; operating Source; operating Source; investing Use; investing Use; financing Source; financing Use the following information to answer this question. Windswept. Inc Year 2 Income Statement ($ in millions). Net sales $ 10,900 Less: Cost of goods sold 8,150 Less: Depreciation 390 Earnings before interest and taxes $ 2,360 Less: Interest paid 108 Taxable income $ 2,252 Less: Taxes 676 Net income $ 1,576 Windswept. Inc. Year 1 and Year 2 Balance Sheets ($ in millions). Year 1 Year 2 Cash $ 410 $ 435 Accounts payable Accounts rec. 1,190 1,090 Long-term debt Inventory 1,960 1,810 Common stock Total $ 3,560 $3,335 Retained earnings Net fixed assets 3,710 4,320 Total assets $7,270 $ 7,655 Total liab. & equity Year 1 $ 2,030 1,110 $ 3,440 690 Year 2 $ 1,965 1,570 $ 3,180 940 $ 7,270 $ 7,655 What amount should be included in the financing section of the Year 2 statement of cash flows for dividends paid? $505 million $815 million $250 million $1,326 million $1,141 million What is the payback period for the following proposed capital budgeting project? Year 0 1 2. 3 4 Cash Flows -1,000,000 200,000 400,000 300,000 500,000 3.2 years 3.4 years 2.8 years 2.8 years 2.2 years The internal rate of return is defined as the Maximum rate of return a firm expects to earn on a project. Rate of return a project will generate if the project in financed solely with internal funds. Discount rate that equates the net cash inflows of a project to zero. Discount rate which causes the net present value of a project to equal zero. Discount rate that causes the profitability index for a project to equal zero