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Question 1 (1 point) If a company prepares an Indirect Method Statement of Cash Flows, which of the following items is not a proper adjustment

Question 1 (1 point)

If a company prepares an Indirect Method Statement of Cash Flows, which of the following items is not a proper adjustment to net income to arrive at cash flow from operating activities:

Question 1 options:

Subtracting Stock Compensation Expense

Adding a decrease in Accounts Receivable

Adding Bad Debt Expense

Subtracting Gains from Sales of Investments

Question 2 (1 point)

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

Question 2 options:

Financing

Investing

Operating

Question 3 (1 point)

If a company reports a 5% profit margin percentage, this means that the company is earning 5 cents of profit per dollar of sales.

Question 3 options:

True
False

Question 4 (1 point)

Most U.S. companies provide a Direct Method Statement of Cash Flows.

Question 4 options:

True
False

Question 5 (1 point)

It is possible for a company's Quick Ratio to be higher than its Current Ratio.

Question 5 options:

True
False

Question 6 (1 point)

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 6 options:

True
False

Question 7 (1 point)

Holden Company reports Interest Expense of $325,000 on its 2020 Income Statement. Holden's Balance Sheet shows Interest Payable of $30,000 as of 12/31/20 and $50,000 as of 12/31/19. How much Cash did Holden pay for interest in 2020?

Question 7 options:

$345,000

$405,000

$305,000

$325,000

Question 8 (1 point)

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

Question 8 options:

Investing

Operating

Financing

Question 9 (1 point)

Holden Company reports Interest Expense of $325,000 on its 2020 Income Statement. Holden's Balance Sheet does not show balances for Interest Payable or Prepaid Interest. How much Cash did Holden pay for interest in 2020?

Question 9 options:

$350,000

$325,000

$0

$300,000

Question 10 (1 point)

Harbinger Corporation reports the following balances:

As of 12/31/20

As of 12/31/19

Accounts Receivable (Gross)

70,000

80,000

Inventory

140,000

160,000

Accounts Payable

135,000

165,000

Unearned Revenue

55,000

45,000

Year ended 12/31/20

Year ended 12/31/19

Sales

500,000

470,000

Cost of Goods Sold

230,000

220,000

How much Cash did Harbinger collect from customers in 2020?

Question 10 options:

$520,000

$500,000

$480,000

$510,000

Question 11 (1 point)

Cash outflows related to employee wages be reflected as part of __________ on the Statement of Cash Flows.

Question 11 options:

Net cash provided by/(used in) INVESTING activities

Net cash provided by/(used in) FINANCING activities

Net cash provided by/(used in) OPERATING activities

Question 12 (1 point)

Harbinger Corporation reports the following balances:

As of 12/31/20

As of 12/31/19

Accounts Receivable (Gross)

70,000

80,000

Inventory

140,000

160,000

Accounts Payable

135,000

165,000

Unearned Revenue

55,000

45,000

Year ended 12/31/20

Year ended 12/31/19

Sales

500,000

470,000

Cost of Goods Sold

230,000

220,000

How much Cash did Harbinger pay for inventory in 2020?

Question 12 options:

$250,000

$230,000

$220,000

$240,000

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