Exam 2: Financial Statements and Cash Flow

A) market value.
B) liquidation value.
C) intrinsic value.
D) cost.
E) None of the above.

Correct Answer

verified

Show Answer

A) without cost to the firm.
B) net income plus taxes.
C) an increase in net working capital.
D) cash that the firm is free to distribute to creditors and stockholders.
E) None of the above.

Correct Answer

verified

Show Answer

A) the dividends paid exceed the net new equity raised.
B) the net sale of common stock exceeds the amount of dividends paid.
C) no income is distributed but new shares of stock are sold.
D) both the cash flow to assets and the cash flow to creditors are negative.
E) both the cash flow to assets and the cash flow to creditors are positive.

Correct Answer

verified

Show Answer

Correct Answer

verified

The accounts on the balance sheet are ge...

View Answer

Show Answer

A) -$70
B) -$35
C) $35
D) $70
E) $105

Correct Answer

verified

Show Answer

A) increase as the net income increases as long as the number of shares outstanding remains constant.
B) decrease as the number of shares outstanding decrease,all else constant.
C) are inversely related to the earnings per share.
D) are based upon the dividend requirements established by Generally Accepted Accounting Procedures.
E) are equal to the amount of net income distributed to shareholders divided by the number of shares outstanding.

Correct Answer

verified

Show Answer

A) Operating cash flow
B) Capital spending
C) Net working capital
D) Cash flow from operations
E) Cash flow to creditors

Correct Answer

verified

Show Answer

A) -$290
B) $795
C) $1,080
D) $1,660
E) $2,165

Correct Answer

verified

Show Answer

A) $360
B) $520
C) $640
D) $780
E) $800

Correct Answer

verified

Show Answer

A) It measures performance over a specific period of time.
B) It determines after-tax income of the firm.
C) It includes deferred taxes.
D) It treats interest as an expense.
E) All of the above.

Correct Answer

verified

Show Answer