Question 8(5 points)

What is Avett Inc.'s 2020 change in cash?

Question 8 options:

Decrease of $1,000

Increase of $200

Increase of $1,000

Decrease of $200

Question 9(8 points)

What is Avett Inc.'s 2020 Cash Flows from Operating Activities?

Question 9 options:

Increase of $148

Decrease of $1,548

Increase of $1,548

Increase of $1,648

Question 10(5 points)

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

Question 10 options:

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

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

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

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

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

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

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

Question 11(5 points)

How does Avett Inc.'s Net Income impact its 2020 Statement of Cash Flows?

Question 11 options:

Net Income is not included on the Statement of Cash Flows

Net Income is included as a decrease in Cash Flows from Operations

Net Income is included as an increase in Cash Flows from Operations

Net Income is included as an increase in Cash Flows from Investing

Net Income is included as an increase in Cash Flows from Financing

Net Income is included as a decrease in Cash Flows from Financing

Net Income is included as a decrease in Cash Flows from Operations

Question 12(6 points)

What is Avett Inc.'s 2020 Cash Flows from Investing Activities?

Question 12 options:

Decrease of $375

Increase of $325

Increase of $375

Decrease of $325

Question 13(6 points)

What is Avett Inc.'s 2020 Cash Flows from Financing Activities?

Question 13 options:

Decrease of $1,073

Increase of $1,123

Increase of $1,073

Decrease of $1,123

Question 14(5 points)

What is the total dollar value of dividends paid in 2020?

Question 14 options:

$1,027

No dividends were paid by Avett Inc. in 2020

$473

$889

Question 15(5 points)

How do periodic Capital Expenditures (purchases of PPE) impact Avett Inc.'s 2020 Statement of Cash Flows?

Question 15 options:

Capital Expenditures areadded in Cash Flows from Investing

Capital Expenditures are subtracted in Cash Flows from Investing

Capital Expenditures areadded in Cash Flows from Operations

Capital Expenditures are subtracted in Cash Flows from Financing

Capital Expenditures are added in Cash Flows from Financing

Capital Expenditures are subtracted in Cash Flows from Operations

Capital Expenditures are not included on the Statement of Cash Flows

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)