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Which of the Cash Flow Statement accounts below, found on Morningstar, represents the cash flow associated with capital expenditures? Select one: O a. Payments for
Which of the Cash Flow Statement accounts below, found on Morningstar, represents the cash flow associated with capital expenditures? Select one: O a. Payments for Common Stock b. Cash Flow from Investing Activities C. Purchase of Property, plant, and Equipment O d. Total Changes in Operating Capital Assume that company X had accounts receivable turnover ratio equal to 15 in 2018, and equal to 13 in 2019. Further, assume that the relevant industry average for this ratio is 18. Based on this information we would most likely conclude that company X Select one: a. Should repay some of its debt in order to lower its interest expense. O b. Should be more careful with awarding credit to its customers, or should improve its collecting of accounts receivable. c. Should increase its gross profit margin by raising the price of the product it sells. d. Should cut the cost of its materials in production in order to improve its profitability. O O Assume that companies A and B both have the same dollar value of total assets and both have return on assets equal to 8%. Further, assume that company A has a return on equity equal to 10%, while company B has a return on equity equal to 15%. Based on this information we could conclude that Select one: O a. Company B was more profitable than Company A. b. Company B used more financial leverage than Company A. O c. The managers of Company B did a better job managing the overall business performance than the management of Company A. O d. Company B managed its assets more efficiently than Company A
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