There are 4 stages in the life cycle of a company, and these are reflected in the Companys cash flows. What stage is characterized by low levels of operating cash flows and higher levels of cash outflows for investing activities and cash inflows for financing activities?

Select one:

a. Decline

b. Growth

c. Introduction

d. Maturity

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Question 11

Question text

The fiscal 2016 balance sheet for Whole Foods Market reports the following data (in millions). What is the companys current ratio?

Cash and cash equivalents	Marketable Securities	Accounts receivable	Merchandise inventories	Current assets	Current liabilities
$351	$379	$242	$517	$1,975	$1,341

Select one:

a. 0.69

b. 0.72

c. 1.38

d. 1.47

e. None of the alternatives

Question 12

Question text

Which of the following methods can be used to improperly manipulate a company's reported net income?

Select one:

a. Capitalizing a cash layout that should be treated as expenses

b. Reducing inventory levels under LIFO so that earlier levels of inventory costs are recognized as costs of goods sold

c. Recording excess reserves for bad debt expenses

d. Using aggressive assumptions in valuing pension liabilities

e. Two of the above alternatives

f. All of the alternatives

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Question 13

Selected ratios follow for Nike, Inc. for the year ended December 31, 2016 (in millions). What is the companys return on equity (ROE) for the year?

Return on net operating assets (RNOA)	Profit Margin (PM)	Net operating profit margin (NOPM)	Asset turnover (AT)	Financial leverage (FL)
43.6%	11.6%	11.4%	1.51	1.72

Select one:

a. 13.1%

b. 17.5%

c. 30.1%

d. 32.2%

e. None of the alternatives

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Question 14

The 2020 Form 10-K of Oracle Corporation, for the May 31, 2020 year-end, included the following information relating to their allowance for doubtful accounts: Balance in allowance at the beginning of the year $327 million, accounts written off during the year of $137 million, balance in allowance at the end of the year $319 million.

What did Oracle Corporation report as bad debt expense for the year?

Select one:

a. $27 million

b. $118 million

c. None of the alternatives

d. $129 million

e. $151 million

Question 15

A firm's cash flow from financing activities includes:

Select one:

a. None of the alternatives.

b. Cash received from sale of investment in bonds

c. Cash paid to acquire treasury stock.

d. Cash paid for merchandise purchased.

e. Cash received as interest income

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Question 16

Hauser Corporation has the following metrics for 2020.

Amount in days	2020
Days sales outstanding	36.5
Days payables outstanding	24.8
Days inventory outstanding	59.1

What is the cash conversion cycle?

Select one:

a. None of the alternatives

b. 61.3 days

c. 70.8 days

d. 2.2 days

e. 47.4 days

Question 17

The 2016 financial statements for Lennon & McCartney, Inc., report the following information:

In Millions	Year ended December 31, 2016 2015
Depreciation Expense	$86.8		$83.5
Land	$37.7		$40
Equipment	$1,693.2		$1647.2
Accumulated Depreciation	$1,165.4		$1146.5

Which of the following estimates the property and equipments percent-used-up at December 31, 2016?

Select one:

a. 45.4%

b. 16.9%

c. 42.3%

d. 68.8%

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Question 18

Which of the following would not require the company to record an accrual on the balance sheet?

Select one:

a. The company owes $43,000 in wages to its employees for the previous two weeks.

b. Interest that will be paid in the next financial reporting period on a loan taken in the current financial period.

c. Management believes a lawsuit against the company is frivolous, but they have had several complaints about unfavorable side effects of their drug over the last two years and it is reasonably possible they could lose the lawsuit.

d. The company knows that they will be fined for pollution as a result of their manufacturing process and can estimate the amount of the obligation.

e. None of the alternatives.

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Question 19

Why might a company repurchase its own stock?

Select one:

a. It believes that the market undervalues its shares

b. To offset dilutive effects of employee stock options granted

c. To recognize an economic gain when the treasury shares are later sold for a profit

d. To improve earnings per share by reducing the denominator

e. All of the above alternatives

f. None of the alternatives

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Question 20

All of the following are potentially dilutive in computing diluted EPS except:

Select one:

a. Employee Stock options

b. Convertible Preferred Stock

c. Convertible bonds

d. Warrants

e. Two of the above alternatives

f. All of the above alternatives

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Question 21

During the year, a company had the cash flows listed below. What was the total net cash flow for the year?

Cash inflow from operating activities	$102,000
Cash outflow from investing activities	73,200
Cash outflow from financing activities	38,400
Cash outflow from noncash current assets and current liabilities	33,600

Select one:

a. Cash outflow of $9,600

b. Cash inflow of 136,800

c. None of the alternatives

d. Cash inflow of $216,800

e. Cash outflow of $68,400

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Question 22

The 2019 Form 10-k of Dow Chemical disclosed a valuation allowance of $1,061 million related to various deferred tax assets. The 2018 valuation allowance had a balance of $1,000 million.

What effect did this change in the allowance have on Dow Chemical's net income in 2019?

Select one:

a. Decrease net income by $61 million

b. Increase net income by $61 million

c. Decrease net income by $1,000 million

d. Increase net income by $1,000 million

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Question 23

Krieger Corp reported the following information in its 2020 annual report (in millions).

Plan's assets at fair value, January 1, 2020 $18,394

Actual return on plan assets $ 2,034

Company contribution $ 1,394

Benefits Paid $ 1,792

Expected return on plan assets $ 1,981

What were the pension plan assets the end of the year?

Select one:

a. $13,855 million

b. $16,668 million

c. $16,712 million

d. $20,030 million

e. None of the above.

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Question 24

The fiscal 2016 balance sheet for Whole Foods Market reports the following data (in millions). What is the companys quick ratio?

Cash and cash equivalents	Marketable securities	Accounts receivable	Merchandise inventories	Current assets	Current liabilities
$351	$379	$242	$517	$1,975	$1,341

Select one:

a. 0.69

b. 0.72

c. 1.38

d. 1.47

Clear my choice

Question 25

A firm's cash flow from investing activities is not affected by:

Select one:

a. Cash received from sale of a piece of land

b. Cash received from issuance of bonds payable

c. Cash paid to purchase a plant asset

d. Cash paid to purchase the common stock of another company

e. None of the other alternatives.