21.Correct answer:bYour answer:
The following information is available from the current period financial statements:The net cash flow from operating activities using the indirect method isYour answer:Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of the year. Cash received from customers to be reported on the cash flow statement using the direct method isYour answer:The relationship of $275,000 to $125,000, expressed as a ratio, is
Your answer:An analysis in which all the components of an income statement are expressed as a percentage of net sales is calleda. liquidity analysis b. vertical analysis c. common-size analysis d. horizontal analysis 25.Correct answer:bYour answer:One reason that a common-size statement is a useful tool in financial analysis is that it enables the user toYour answer:In horizontal analysis, each item is expressed as a percentage of the
Your answer:Assume the following sales data for a company:What is the percentage increase in sales from 2011 to 2012?
Marketable securities$36,564Notes payable (short-term)$22,979Property, plant, and equipment$649,237Prepaid expenses$1,776$788,687 $112,668 $1,590,298 $51,829 29.Correct answer:dYour answer:Based on the following data, what is the amount of working capital? Accounts payable$34,510Accounts receivable$60,575Accrued liabilities$6,981Cash$17,986Intangible assets$44,700Inventory$71,255Long-term investments$119,106Long-term liabilities$77,512Marketable securities$33,111Notes payable (short-term)$24,003Property, plant, and equipment$666,120Prepaid expenses$2,958
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