financial statements1

financial statements1 - Net cash flow i . Answer: d The The...

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Net cash flow Answer: d Diff: E N i . Which of the following factors could explain why last year Cleaver Energy had negative net cash flow, but the cash on its balance sheet increased? a. The company paid a large dividend. b. The company had large depreciation and amortization expenses. c. The company repurchased common stock. d. The company issued new debt. e. The company made a large investment in new plant and equipment. Net cash flow Answer: c Diff: E ii . Analysts who follow Sierra Nevada Inc. recently noted that, relative to the previous year, the company’s net cash flow was larger but cash on the firm’s balance sheet had declined. What factors could explain these changes? a. The company sold a division and received cash in return. b. The company cut its dividend. c. The company made a large investment in new plant and equipment. d. Statements a and b are correct. e. Statements b and c are correct. Net cash flow and net income Answer: a Diff: E iii . A stock analyst has acquired the following information for Palmer Products: Retained earnings on the year-end 2001 balance sheet was $700,000. Retained earnings on the year-end 2002 balance sheet was $320,000. The company does not pay dividends.
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This note was uploaded on 08/04/2011 for the course COMM 101 taught by Professor Sy during the Spring '11 term at USC.

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financial statements1 - Net cash flow i . Answer: d The The...

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