Question 1(5 points)

How do Short-Term Investments impact Avett Inc.'s 2020 Statement of Cash Flows?

Question 1 options:

The periodic change in Short-Term Investments is not included on the Statement of Cash Flows

The periodic change in Short-Term Investments is added in Cash Flows from Operations

The periodic change in Short-Term Investments is added in Cash Flows from Investing

The periodic change in Short-Term Investments is subtracted in Cash Flows from Operations

The periodic change in Short-Term Investments is subtracted in Cash Flows from Financing

The periodic change in Short-Term Investments is subtracted in Cash Flows from Investing

The periodic change in Short-Term Investments is added in Cash Flows from Financing

Question 2(5 points)

How do Dividends Paid impact Avett Inc.'s 2020 Statement of Cash Flows?

Question 2 options:

Dividends Paid are subtracted in Cash Flows from Financing

Dividends Paid are not included on the Statement of Cash Flows

Dividends Paid are subtracted in Cash Flows from Investing

Dividends Paid areadded in Cash Flows from Operations

Dividends Paid areadded in Cash Flows from Investing

Dividends Paid are subtracted in Cash Flows from Operations

Dividends Paid are added in Cash Flows from Financing

Question 3(5 points)

How does Avett Inc.'s 2020 common stock issuance impact its 2020 Statement of Cash Flows?

Question 3 options:

The common stock issuance is added in Cash Flows from Financing

The common stock issuance is added in Cash Flows from Investing

The common stock issuance is added in Cash Flows from Operations

The common stock issuance is not included on the Statement of Cash Flows

The common stock issuance is subtracted in Cash Flows from Financing

The common stock issuance is subtracted in Cash Flows from Operations

The common stock issuance is subtracted in Cash Flows from Investing

Question 4(5 points)

How does Avett Inc.'s Mortgage Payable impact its 2020 Statement of Cash Flows?

Question 4 options:

The periodic change in Mortgage Payable is added in Cash Flows from Investing

The periodic change in Mortgage Payable is subtracted in Cash Flows from Investing

The periodic change in Mortgage Payable is added in Cash Flows from Financing

The periodic change in Mortgage Payable is added in Cash Flows from Operations

The periodic change in Mortgage Payable is not included on the Statement of Cash Flows

The periodic change in Mortgage Payable is subtracted in Cash Flows from Operations

The periodic change in Mortgage Payable is subtracted in Cash Flows from Financing

Question 5(5 points)

How do Other Payables impact Avett Inc.'s 2020 Statement of Cash Flows?

Question 5 options:

The periodic change in Other Payables is subtracted in Cash Flows from Investing

The periodic change in Other Payables is added in Cash Flows from Investing

The periodic change in Other Payables is added in Cash Flows from Operations

The periodic change in Other Payables is added in Cash Flows from Financing

The periodic change in Other Payables is subtracted in Cash Flows from Financing

The periodic change in Other Payables is subtracted in Cash Flows from Operations

The periodic change in Other Payables is not included on the Statement of Cash Flows

Question 6(5 points)

What is Avett, Inc.'s 2020 total "Common Stock Issuance" to be reported on its 2020 Statement of Cash Flows?

Question 6 options:

$40

$50

$30

$10

Question 7(5 points)

Saved

What is Avett, Inc.'s 2020 Depreciation Expense?

Question 7 options:

$200

$100

$150

$175

Below is the balance sheet and income statement of Avett, Inc. CONSOLIDATED BALANCE SHEET Year Ending ( in millions) Dec. 31 2020 2019 ASSETS $800 Cash and Cash Equivalents $1,000 300 500 Accounts Receivable 650 Merchandise Inventory 880 120 Short Term Investments 145 TOTAL CURRENT ASSETS 2.325 2,070 PP&E, net accumulated depreciation of 1,250 1.000 $600 in 2020 and $500 in 2019 TOTAL ASSETS $3.575 $3,070 LIABILITIES Accounts Payable $530 $500 Other Payables 410 362 TOTAL CURRENT LIABILITIES 940 862 Mortgage Payable O 700 Long-Term Bank Loan 900 850 TOTAL LIABILITIES 1,840 2,412 OWNERS EQUITY Common Stock 80 Preferred Stock 70 0 Additional Paid in Capital 0 290 Retained Earnings 250 1.365 TOTAL OWNERS EQUITY 338 1,735 658 TOTAL LIABILITIES + OWNERS EQUITY $3.575 $3,0703 /5 100% + H CONSOLIDATED INCOME STATEMENT (in millions) December 31, 2020 Revenues $20,000 Cost of Goods Sold (10,000) Profit Margin (10,000) SG&A (8,000) Pre-Tax Income 2,000 Tax Expense (500) Net Income $1,500 Additional Information No Property, Plant & Equipment (PPE) was sold during 2020. No short-term investments were sold during the year. All depreciation expense is included in SG&A Because there is no dividends payable account at either the start of end of the year, you may assume all dividends declared in 2020 were paid in 2020. To Do Complete the 2020 Cash Flow Statement on the following page. Note: You may use the worksheet provided on the last page to help you prepare the Cash Flow Statement. Hint #1 PPE; Remember to evaluate changes in gross PPE separate from changes in accumulated depreciation. Recall gross PPE less accumulated depreciation equals net PPE. Hint #2 Stock Issuance: Remember the total change in cash due to stock issuances repurchases is the sum of the change in common stock (stated par value) and additional paid in capital (APIC)