Question 14 to 23

C. $150.000 D. 350,000 14. Financial professionals prefer to focus on an enting approach that focus A. Governmental conting methods. B. Current prospective cash flows C. Economically based seruals. D. International accrual counting standards. 15. These ratios mensure the relationship between a firm's liquid (or current) sets and its current abilities A. Cross-section internal growth C. liquidity D. market value 16. If you are looking to review a firm's sources and uses of ash flows over the year, the cariest place to find that information is A. the Income Statement the Statement of Retained Earnings C. the Statement of Cash Flows D. the Balance Sheet 19. Emma Carp had carings before interest and taxes of $500,000 and had a depreciation expense of $200,000 this last year. If the firm wis subject to an average tax rate of 30%, what was Emma's operating cash flow for the year? If you need to assume that Emma's interest expense was zero for the year A. $175,000 B. 582.500 ca 600 D . It lost money 18. When calculating a firm's free cash flow from earnings before interest and taxes we must add back depreciation, amortization and depletion expense and allowances because A. they are non-cash expenditures B. the ac ting method for raporting such expenses may be different from that reported to the taxing authority C. they approximate the value of fixed asset purchases during the year. D. they are unrelated to the amount of taxes paid during the year. 19. The effect of an increase in a fin's accounts payable during the year, assuming that the current asset portion of the balance sheet remains the same, is A. an outflow of cash. B. an inflow of cash. C. neither an inflow ran outflow of cash. D. a decrease in the equity of the firm 20. Edison Bapels had operating cash flow equal to 5850 for 2012. If its earnings before interest and taxes were $1,000 while i tax bill was $300, what was Edison's depreciation expense for the year? A $150 B. 5550 C. $1,550 D. not enough information to calculate 21. Which stasiment is true? A. The less liquid assets a fimbolds, the less likely it is that the firm will experience financial distress B. The lower the liquidity ratios, the less liquidity risk a firm las. C. Liquid assets prerate profits for the firm. D. Extremely high levels of liquidity guard against liquidity crises, but at the cost of lower returns on assets. 22. These ratios measure the relationship between a firm's liquid (or current) assets and its current liabilities A. cross-section Bindemal growth C. liquidity D. market value 23. You are evaluating the balance sheet for Blue Jays Corporation. From the balance sheet you find the following balances: Cash and marketable securities = $200,000, Accounts receivable - $800,000, Inventory = $1,000,000, Accrued wages and taxes = $250,000, Accounts payable - $400,000 and Notes payable - $300,000. What is Blue Jays' Quick ratio? A. 1.05236 times B. 1.05263 times C. 1.05263% D. 1.02563 times