Question : 71. Upon review of Mack’s statement of cash flows, the following : 1224904

 

 

71. Upon review of Mack’s statement of cash flows, the following was noted: 

Cash flows from operating activities

$ 15,000

Cash flows from investing activities

40,000

Cash flows from financing activities

(50,000)

 

 

From this information, the most likely explanation is that Mack is: A. using cash from operations and selling long-term assets to pay back debt.B. using cash from operations and borrowing to purchase long-term assets.C. using its profits to expand growth.D. using cash from investors to provide for operations.

 

72. Upon review of Bert’s statement of cash flows, the following was noted: 

Cash flows from operating activities

$   60,000

Cash flows from investing activities

(125,000)

Cash flows from financing activities

115,000

 

 

From this information, the most likely explanation is that Bert is A. using cash from operations and selling long-term assets to pay back debt.B. using cash from operations and borrowing to purchase long-term assets.C. using its profits to expand growth.D. using cash from investors to provide for operations.

 

73. Upon review of Roepers’s statement of cash flows, the following was noted: 

Cash flows from operating activities

$   60,000

Cash flows from investing activities

80,000

Cash flows from financing activities

(130,000)

 

 

From this information, the most likely explanation is that Roeper is A. using cash from operations and selling long-term assets to pay back debt.B. using cash from operations and borrowing to purchase long-term assets.C. using its profits to expand growth.D. using cash from investors to provide for operations.

 

74. The primary purpose of the statement of cash flows is to provide information about: A. the financial position of the company.B. the profitability of the company.C. the investing and financing activities of the company.D. the cash inflows and outflows of the company.

 

75. Bloom’s Garden Center CompanySelected data from the financial statements of Bloom’s Garden Center are provided below. 

 

2012

2011

Cash and cash equivalents

$  75,000

$  62,000

Inventory

28,000

32,000

Total assets

680,000

565,000

Cash flow from operations

850,000

639,000

Dividends

84,200

70,000

Capital expenditures

112,000

95,000

 

 

 

Refer to the selected data provided for Bloom’s Garden Center Company. Which of the following would result from a horizontal analysis of Bloom’s cash and cash equivalents? A. Cash and cash equivalents increased by $13,000 or 20.97% during 2012.B. Cash and cash equivalents increased by $13,000 or 30.79% during 2012.C. Cash and cash equivalents are 11.03% of total assets in 2012.D. The free cash flow is $653,800 in 2012.

 

76. Bloom’s Garden Center CompanySelected data from the financial statements of Bloom’s Garden Center are provided below. 

 

2012

2011

Cash and cash equivalents

$  75,000

$  62,000

Inventory

28,000

32,000

Total assets

680,000

565,000

Cash flow from operations

850,000

639,000

Dividends

84,200

70,000

Capital expenditures

112,000

95,000

 

 

 

Refer to the selected data provided for Bloom’s Garden Center Company. Which of the following would result from a vertical analysis of Bloom’s cash and cash equivalents? A. Cash and cash equivalents increased by $13,000 or 20.97% during 2012.B. The free cash flow is $653,800 in 2012.C. Cash and cash equivalents are 11.03% of total assets in 2012.D. Cash and cash equivalents are 20% of total assets in 2012.

 

77. Drucker Dynamics Inc.The current assets section of the balance sheets of Drucker Dynamics as of December 31, 2012 and 2011, is presented below. 

 

2012

2011

Cash and cash equivalents

$     87,000

$     66,560

Accounts receivable, net

189,000

231,840

Inventory

249,040

304,080

Other current assets

26,000

21,000

 

Total current assets

$   551,040

$   623,480

 

Total Assets

$ 3,490,000

$4,450,000

 

 

 

 

Refer to the selected data provided for Bloom’s Garden Center. What is Bloom’s free cash flow in 2012? A. The free cash flow is $744,000 in 2012.B. The free cash flow is $653,800 in 2012.C. The free cash flow is $635,800 in 2012.D. The free cash flow is $474,000 in 2012.

 

78. Max’s Tire Center CompanySelected data from the financial statements of Max’s Tire Center are provided below. 

 

2012

2011

Cash and cash equivalents

$  120,000

$  104,000

Inventory

85,000

68,000

Total assets

1,400,000

1,230,000

Cash flow from operations

550,000

449,000

Dividends

315,000

300,000

Capital expenditures

200,000

142,000

 

 

 

Refer to the selected data provided for Max’s Tire Center. Which of the following would result from a horizontal analysis of Max’s cash and cash equivalents in 2012? A. Cash and cash equivalents increased by $16,000 or 15.80% during 2012.B. Cash and cash equivalents increased by $16,000 or 15.38% during 2012.C. Cash and cash equivalents are 8.57% of total assets in 2012.D. The free cash flow is $35,000 in 2012.

 

79. Max’s Tire Center CompanySelected data from the financial statements of Max’s Tire Center are provided below. 

 

2012

2011

Cash and cash equivalents

$  120,000

$  104,000

Inventory

85,000

68,000

Total assets

1,400,000

1,230,000

Cash flow from operations

550,000

449,000

Dividends

315,000

300,000

Capital expenditures

200,000

142,000

 

 

 

Refer to the selected data provided for Max’s Tire Center. Which of the following would result from a vertical analysis of Max’s cash and cash equivalent in 2012? A. Cash and cash equivalents increased by $16,000 or 15.38% during 2012.B. The free cash flow is $35,000 in 2012.C. Cash and cash equivalents are 20.0% of total assets in 2012.D. Cash and cash equivalents are 8.57% of total assets in 2012.

 

80. Max’s Tire Center CompanySelected data from the financial statements of Max’s Tire Center are provided below. 

 

2012

2011

Cash and cash equivalents

$  120,000

$  104,000

Inventory

85,000

68,000

Total assets

1,400,000

1,230,000

Cash flow from operations

550,000

449,000

Dividends

315,000

300,000

Capital expenditures

200,000

142,000

 

 

 

Refer to the selected data provided for Max’s Tire Center. What is Max’s Free Cash Flow in 2012? A. The free cash flow is $35,000 in 2012.B. The free cash flow is $40,000 in 2012.C. The free cash flow is $27,300 in 2012.D. The free cash flow is $33,600 in 2012.

 

 

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