107. 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 $1,080,000($800,000 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.
|
108. 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.
109. 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. Net cash flows from operating activities divided by ending total assets.
110. Which of the following statements is
not
true relating to cash flow analysis?
a. Cash return on assets indicates the amount of operating cash flow generated for each dollar invested in assets.
b. To maximize cash flow from operations, a company strives to increase both cash flow per dollar of sales and sales per dollar of assets invested.
c. Cash return on assets can be separated to examine two important business strategies: cash flow to sales and asset turnover.
d. Positive cash flow from operations is not important to a company’s survival in the long-run.
111. The balance sheet of Storage Solutions reports total assets of $300,000 and $350,000 at the beginning and end of the year, respectively. The cash return on assets for the year is 10%. What is Storage Solutions’ net cash flows from operating activities for the year?
a.
|
$25,000.
|
b.
|
$30,000.
|
c.
|
$32,500.
|
d.
|
$35,000.
|
113. Wireless Technologies reports sales of $50 million. Accounts receivable at the beginning and end of the year are $5 million and $7 million, respectively. What is the amount of cash received from customers?
a.$50 million.
b.$52 million.
c.$48 million.
d.$55 million.
114. Wireless Technologies reports cost of goods sold of $40 million. Inventory at the beginning and end of the year are $4 million and $3 million, respectively. Accounts payable at the beginning and end of the year are $3 million and $6 million, respectively. What is the amount of cash paid to suppliers?
a.$40 million.
b.$36 million.
c.$44 million.
d.$42 million.
115. Wireless Technologies reports operating expenses of $2 million. Operating expenses include rent expense. Prepaid rent at the beginning and end of the year are $20,000 and $70,000, respectively. All other operating expenses were paid in cash as incurred. What is the amount of cash paid for operating expenses?
a.$2,000,000.
b.$2,070,000.
c.$1,950,000.
d.$2,050,000.
116. Wireless Technologies reports income tax expense of $800,000. Income tax payable at the beginning and end of the year are $50,000 and $70,000, respectively. What is the amount of cash paid for income taxes?
a.$780,000.
b.$800,000.
c.$820,000.
d.$870,000.