Question :
61. Which balance sheet accounts most affected by financing activities? A. Current assetsB. Current : 1224830
61. Which balance sheet accounts are most affected by financing activities? A. Current assetsB. Current liabilitiesC. Long-term assetsD. Long-term liabilities and stockholders’ equity
62. Which of the following financing activities results in a cash inflow? A. Buying treasury stockB. Issuing bondsC. Repaying a bank loanD. Paying cash dividends
63. 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
70,000
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.
64. Free cash flow is cash from operations, less cash for : A. dividends and cash for fixed assets needed to maintain productivity.B. dividends and cash to redeem bonds payable.C. fixed assets needed to maintain productivity.D. dividends, cash for fixed assets needed to maintain productivity, and cash to redeem bonds payable.
65. 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.
66. Upon review of Roepers’s statement of cash flows, the following was noted:
Cash flows from operating activities
$ 50,000
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.
67. Press Inc. reported the following information in its annual report for 2012.
Cash flows from operating activities
$295,000
Capital expenditures
110,000
Proceeds from disposals of property, plant and equipment
57,000
Total payments expected to retire long-term debt over the next 5 years
200,000
What is the cash flow adequacy ratio for 2012 for Press? A. 7.375B. 4.625C. .925D. 6.050
68. Power Chair Company reported the following information in its annual report for 2012.
Cash flows from operating activities
$525,000
Capital Expenditures
300,000
Total payments expected to retire long-term debt over the next 3 years
150,000
What is the cash flow adequacy ratio for 2012 for Power Chair Company? A. 0.50B. 3.50C. 4.50D. 8.00
69. Which of the following measures can be used to evaluate a company’s ability to meet future debt obligations after paying operating expenses, dividends and making capital expenditures? A. Earnings per shareB. Net incomeC. Cash flow adequacy ratioD. Net increase or decrease in cash and cash equivalents
70. Free cash flow is: A. all the cash in the bank.B. the cash flow from operations.C. the cash flow from financing, less cash used to purchase fixed assets to maintain productivity and cash used for dividends.D. the cash flow from operations, less cash used to purchase fixed assets to maintain productivity and cash used for dividends.
