Fi_1 - E 9 SCENARIO 3-3 Laiho Industries reported the...

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8.  Which of the following statements is CORRECT? A)  In the statement of cash flows, a decrease in inventories is reported as a use of cash. B)  In the statement of cash flows, a decrease in accounts receivable is reported as a use of cash. C)  In the statement of cash flows, depreciation charges are reported as a use of cash. D)  Dividends do not show up in the statement of cash flows because dividends are considered to be a financing activity, not an operating activity. E)  In the statement of cash flows, a decrease in accounts payable is reported as a use of cash. Points Earned:  0.0/5.0  Correct Answer(s):
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Unformatted text preview: E 9. SCENARIO 3-3 Laiho Industries reported the following information in its annual report: • Net income = $7.0 million. • NOPAT = $60 million. • EBITDA = $120 million. • Net profit margin = 5.0%. Laiho has a depreciation expense, but no amortization expense. Laiho has $300 million in operating capital, its after-tax cost of capital is 10%, and the firm's tax rate is 40%. What are Laiho's sales? A) $160.0 million B) $120.0 million C) $200.0 million D) $180.0 million E) $140.0 million Points Earned: 0.0/5.0 Correct Answer(s): E...
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This note was uploaded on 11/04/2009 for the course BUS FIN 2100 taught by Professor Shmidl during the Spring '09 term at Laramie County Community College.

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