questions 13,14,15,16,17

bank that loans funds to finance the start-up of a new firm 3. What type of financial statement starts by taking the cash balance of a firm at the beginning of the year, and reconciles any changes in account balances? A. Balance sheet B. Income statement C. Statement of owners's equity D. Statement of cash flows 14. Outdoor Living needs $14.6 million to finance updates and additions to its production equipment. The underwriters estimate that the firm could sell additional shares of stock at $23.50 a share with an percent. This would be a firm-commitment underwriting. The estimated issue costs are $368,000. How many shares of stock will Outdoor Living need to sell to finance this project? (Round up to the next whole share.) A. 588,917 shares B. 686,299 shares C. 552,311 shares D. 690,446 shares 15. Which of the following would result in a decrease in cash flow and a use of cash? A. A decrease in inventory B. An increase in retained earnings C. An increase in common stock D. A decrease in accounts payable 16. The DuPont identity breaks down return on equity (ROE) into three parts, which are A. operating efficiency (as measured by profit margin), asset use efficiency (as measured by total asset turnover), and financial leverage (as measured by the equity multiplier). B. operating efficiency (as measured by inventory turnover), customer reach (as measured by total customers served), and short- term solvency (as measured by the current ratio). C. operating efficiency (as measured by inventory turnover), asset use efficiency (as measured by total asset turnover), and short- term solvency (as measured by the current ratio). D. overall efficiency (as measured by profit margin), asset-use efficiency (as measured by current asset turnover), and financial leverage (as measured by long-term debt ratio) 17. Which term relates to the cash flow that results from a firm's ongoing, normal business activities? A. Operating cash flow B. Capital spending C. Net working capital D. Cash flow from assets