Question : 51. During 2012, Victoria Group: (1) received cash of $5,000 billed : 1236062

51. During 2012, Victoria Group: (1) received cash of $5,000 billed to a customer in 2011; (2) earned $20,000 of net income; (3) paid interest of $6,000 on a corporate bond issued; (4) paid dividends of $8,000 to its stockholders; (5) borrowed $40,000 from a local bank; and (6) purchased its own shares of common stock for $10,000. What is Victoria Group’s cash flow from financing activities in 2012? 
A. $40,000.
B. $30,000.
C. $22,000.
D. $16,000.

52. The following information pertains to Alpha Computing at the end of 2012:

Alpha Computing’s Retained Earnings account had a zero balance at the beginning of 2012.
What amount of dividends did the company pay in 2012? 
A. $280,000.
B. $150,000.
C. $30,000.
D. $80,000.

53. The balance sheet of Sound Designs reports total assets of $750,000 and $800,000 at the beginning and end of the year, respectively. Sales revenues are $1.5 million ($1.2 million in the previous year), net income is $150,000, and net cash flows from operating activities are $175,000. What is Sound Designs’ cash return on assets? 
A. 19.4%.
B. 21.9%.
C. 22.6%.
D. 18.8%.

54. The balance sheet of Sound Designs reports total assets of $750,000 and $800,000 at the beginning and end of the year, respectively. Sales revenues are $1.5 million ($1.2 million in the previous year), net income is $150,000, and net cash flows from operating activities are $175,000. What is Sound Designs’ cash flow to sales? 
A. 22.6%.
B. 11.7%.
C. 14.6%.
D. 13.0%.

55. The balance sheet of Sound Designs reports total assets of $750,000 and $800,000 at the beginning and end of the year, respectively. Sales revenues are $1.5 million ($1.2 million in the previous year), net income is $150,000, and net cash flows from operating activities are $175,000. What is Sound Designs’ asset turnover? 
A. 2.0 times.
B. 1.7 times.
C. 0.5 times.
D. 1.9 times.

56. The balance sheet of Tech Track reports total assets of $400,000 and $500,000 at the beginning and end of the year, respectively. Sales revenues are $1.1 million ($0.8 million in the previous year), net income is $40,000, and net cash flows from operating activities are $50,000. How does Tech Track’s cash return on assets compare to the industry average of 10%? 
A. Better.
B. Worse.
C. Same as.
D. Cannot be determined with the data provided.

57. The balance sheet of Tech Track reports total assets of $400,000 and $500,000 at the beginning and end of the year, respectively. Sales revenues are $1.1 million ($0.8 million in the previous year), net income is $40,000, and net cash flows from operating activities are $50,000. How does Tech Track’s cash flow to sales ratio compare to the industry average of 5%? 
A. Better.
B. Worse.
C. Same as.
D. Cannot be determined with the data provided.

58. The balance sheet of Tech Track reports total assets of $400,000 and $500,000 at the beginning and end of the year, respectively. Sales revenues are $1.1 million ($0.8 million in the previous year), net income is $40,000, and net cash flows from operating activities are $50,000. How does Tech Track’s asset turnover compare to the industry average of 2.4 times? 
A. Better.
B. Worse.
C. Same as.
D. Cannot be determined with the data provided.

59. We can separate cash return on assets into: 
A. Cash flow to sales and return on assets.
B. Cash flow to sales and asset turnover.
C. Cash flow to sales and profit margin.
D. Profit margin and asset turnover.

60. We calculate cash return on assets as 
A. The change in cash divided by average total assets.
B. Net cash flows from operating activities divided by average total assets.
C. The change in cash divided by ending total assets.
D. Met cash flows from operating activities divided by ending total assets.