There are 14 multiple choice questions and I highlighted the question part in yellow. Please highlight the correct answer a different color. Blue or red or something. Thank you so so much for your help!!

21. Which of the following types of financial statement analysis would be used to see how a company's operating expenses as a percentage of net sales have changed from one year to the next? a) b) c) d) Analysis of internal control system Ratio analysis Vertical and horizontal analysis Trend analysis 22. Which of the following types of financial statement analysis would be used to see how the sales revenue of a company has changed from one year to the next? a) b) c) d) Horizontal analysis of balance sheet Vertical analysis of income statement Vertical analysis of balance sheet Horizontal analysis of income statement 23. Which of the following statements accurately describes the statement of cash flows? a) b) c) d) It indicates when long-term debt will mature It shows the link between book income and earnings per share It shows the relative proportion of debt and assets It shows the link between accrual based income and the cash reported on the balance sheet 24. While preparing a statement of cash flows using the indirect method, the Depreciation Expense _______. a) b) c) d) Is added back as an adjustment to Net income in the operating activities section Is shown as a negative cash flow in the investing activities section Is added back to purchase of plant assets under investing activities Is shown as a negative cash flow under operating activities 25. Rodriguez Tint Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Rodriguez Inc. Comparative Balance sheet December 31, 2014 and 2013 2014 Cash $21,000 Accounts Receivable 31,000 Inventory 53,000 Plant and Equipment 123,000 Accumulated Depreciation - Plant & equip. (43,000) Total Assets $228,000 2013 $18,000 35,000 25,000 90,000 (40,000) $168,000 increase/decrease $3,000 (4,000) 28,000 33,000 (3,000) $60,000 Additional information provided by the company includes the following: 1) Equipment costing $65,000 was purchased for cash. 2) Equipment with a cost of $32,000 and accumulated depreciation of $7,000 was sold for $45,000. What was the amount of net cash provided by (used for) investing activities? a) b) c) d) $120,000 $(20,000) $20,000 $(120,000) 27. e-Shop Inc. provides the following data: Assets Current assets: Cash and cash equivalents Accounts receivable, net. Merchandise Inventory Total current assets Property, plant, and equipment, net Total assets Net credit sales $500,000 a) b) c) d) 1 times 4.03 times 0.67 times 1.99 times 2015 2014 $31,000 38,000 55,000 $124,000 121,000 245,000 $25,000 62,000 50,000 137,000 120,000 257,000 28. \"Analysts look for red flags in financial statements that may signal financial trouble\". Which of the following is a \"red flag\" suggesting that a company may be in trouble? a) b) c) d) A decrease in divided payout ratio from year to year A decline in days' sales in inventory Net cash flow from operating activities is consistently lower than net income A reduction in the debt ratio 29. A summary of significant accounting policies and explanations of specific items on the financial statements will be given in _______. a) b) c) d) The notes to financial statements The balance sheet The report of independent registered public accounting firm The income statement 30. the activities that are included in the operating activities section of the statement of cash flows are ________. a) b) c) d) Activities that increase or decrease long - term assets Activities that create revenue or expenses Activities that pertain to construction of new facilities Activities that obtain the cash needed to launch and sustain the business 32. Avatar Auto Parts Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: Avatar Company Comparative Balance sheet December 31, 2014 and 2013 Accounts payable Accrued liabilities Long - term notes payable Total liabilities 2014 $4,000 2,000 84,000 $90,000 2013 $6,000 1,000 90,000 $97,000 increase/decrease $(2,000) 1,000 (6,000) $(7,000) How will the change in Accounts Payable be shown on the statement of cash flows? a) b) c) d) As a deduction from investing cash flows As an addition to net income As a deduction from net income As an addition to operating cash flows 33. Cash received from the issuance of notes payable is a(n) _____ on the statement of cash flows. a) b) c) d) Financing activity Investing activity Non - cash activity Operating activity 34. Felix skateboards company used the indirect method to prepare the statement of cash flows. Refer to the following income statement: Felix Company Income statement Year ended December 31, 2015 Sales Revenue Interest revenue Gain on sale of plant assets Total revenues and gains Cost of goods sold Salary expense Depreciation expense Other operating expenses Interest expense Income tax expense Total expenses Net income (loss) $245,000 2,000 5,000 118,000 43,000 13,000 25,000 1,500 5,500 Additional information provided by the company includes the following: 1) Current assets, other than cash, increased by $24,000 2) Current liabilities decreased by $1,000 How much is the net cash provided by operating activities? a) b) c) d) $21,000 $34,000 $29,000 $39,000 $252,000 206,000 $46,000 35. e-Shop Inc. has net sales on account of $1,200,000. The average net accounts receivable are $600,000. Calculate the days' sales in receivables. a) b) c) d) 439.8 days 182.5 days 304.0 days 8.7 days 36. The vertical analysis statement of Nobell Inc. is as shown below: Nobell Inc. Comparative Income Statement Years Ended December 31, 2015 and 2014 (In millions) 2016 Net sales $6,355 Cost of Goods sold 3,370 Gross profit $2,985 Operating expenses Selling expenses $675 Administrative expenses $410 Total expenses $1,085 Operating income $1,900 Other revenue and (expenses) Interest revenue 0 Interest expense (400) Total revenues and (expenses) (400) Income before taxes $1,500 Income tax expense 230 Net income $1,270 % of total 100% 53.0 47.0 2015 $4,920 2,200 $2,720 % of total 100% 44.7 55.3 10.6 6.5 17.1 29.9 $580 425 $1,005 $1,715 11.8 8.6 20.4 34.9 0 (6.3) (6.3) 23.6 3.6 20.0 0 (695) (695) $1,020 210 $810 0 (14.1) (14.1) 20.7 4.3 16.5 The figure 16.5% shown for net income in 2015 signifies that _________. a) b) c) d) Net income is increased by 16.5% over the previous year Net income is 16.5% of net sales revenues Net income is equal to 16.5 times of the income before income tax Net income is 16.5% of gross profit