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The Floor Store had interest expense of $38,400, depreciation of $28,100, and taxes of $19,600 for the year. At the start of the year, the firm had total assets of $879,400 and current assets of $289,600. By year's end total assets had increased to $911,900 while current assets decreased to $279,300. What is the amount of the cash flow from investment activity for the year?


A) −$51,150
B) $21,850
C) $29,300
D) −$70,900
E) −$89,400

F) A) and B)
G) All of the above

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Flo's Flowers has accounts receivable of $4,511, inventory of $1,810, sales of $138,609, and cost of goods sold of $64,003. How many days does it take the firm to sell its inventory and collect the payment on the sale assuming that all sales are on credit?


A) 11.88 days
B) 22.20 days
C) 16.23 days
D) 14.50 days
E) 18.67 days

F) B) and E)
G) All of the above

Correct Answer

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Which one of the following is a source of cash?


A) Increase in accounts receivable
B) Decrease in common stock
C) Increase in fixed assets
D) Decrease in accounts payable
E) Decrease in inventory

F) A) and D)
G) A) and C)

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A firm has a debt-total asset ratio of 61 percent and a return on total assets of 11.4 percent. What is the return on equity?


A) 26.27 percent
B) 29.23 percent
C) 18.48 percent
D) 10.95 percent
E) 13.50 percent

F) A) and B)
G) C) and D)

Correct Answer

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