97. During the year, Victory Solutions: (1) received cash of $5,000 billed to a customer in 2014; (2) earned $20,000 of net income; (3) paid interest of $6,000 on a corporate bond issued; (4) paid...







97. During the year, Victory Solutions: (1) received cash of $5,000 billed to a customer in 2014; (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 Solution’s cash flow from financing activities?























a.




$40,000.




b.




$30,000.




c.




$22,000.




d.




$16,000.








98. The following information pertains to Alpha Computing at the end of 2015:























Assets




$970,000




Liabilities




$560,000




Net Income




$90,000




Common Stock




$350,000




Alpha Computing’s Retained Earnings account had a zero balance at the beginning of 2015. What amount of dividends did the company pay in 2015?























a.




$280,000.




b.




$150,000.




c.




$30,000.




d.




$80,000.








99. The balance sheet of Computer World reports total assets of $350,000 and $450,000 at the beginning and end of the year, respectively. Sales revenues are $800,000, net income is $100,000, and net cash flows from operating activities are $150,000. What is Computer Worlds' cash return on assets?























a.




33.3%.




b.




42.9%.




c.




25.0%.




d.




37.5%.








100. The balance sheet of Computer World reports total assets of $350,000 and $450,000 at the beginning and end of the year, respectively. Sales revenues are $800,000, net income is $100,000, and net cash flows from operating activities are $150,000. What is Computer World's cash flow to sales?























a.




15.6%.




b.




25.0%.




c.




18.8%.




d.




37.5%.








101. The balance sheet of Computer World reports total assets of $350,000 and $450,000 at the beginning and end of the year, respectively. Sales revenues are $800,000, net income is $100,000, and net cash flows from operating activities are $150,000. What is Computer World's asset turnover?























a.




2.0 times.




b.




2.3 times.




c.




0.5 times.




d.




1.8 times.








102. 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%.








103. 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%.








104. 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.








105. 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.








106. 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.








May 15, 2022
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