Question 6

In 2016, Southwest Airlines had negative net working capital of $(2,346) million and current assets of $4,498 million. The firms current liabilities are:

		$2,152 million
		$6,844million
		$2,346 million
		$5,236 million

Question 7

Which of the following is a cash flow from operating activities?

		Sale of long-term investments in common stock.
		Purchase of merchandise for resale.
		Payment of a note payable. D Sale of a piece of land no longer used in operations.

Question 8

How would cash collected on accounts receivable affect the balance sheet?

		Increase liabilities and decrease equity
		Decrease liabilities and increase equity
		Increase assets and decrease assets
		Increase assets and increase equity

Question 10

Which of the following accounts would NOT be involved in preparing the income statement?

		Depreciation expense
		Accumulated depreciation
		Provision for taxes
		Interest income