Instructions: Designate the best answer for each of the following questions. Cas
ID: 2453169 • Letter: I
Question
Instructions: Designate the best answer for each of the following questions. Cash provided by operating activities: summarizes cash flows relating to the purchase and disposal of long-lived assets. may be larger than net income. equals the change in cash for the year. decreases when long-term debt is repaid. Haney's Cookie Shop reported equipment at $120,000 and $30,000 accumulated depreciation on its December 31, 2016, balance sheet. During 2017, the shop purchased equipment costing $30,000and sold equipment costing S10,000 (book value $4,000) for $1,000. On December 31, 2017, net equipment was $98,000. Using the indirect method, Samantha's would report depreciation expense on its statement of cash flows for 2017 of: Short-term liquidity ratios in elude the: Sunshine Paint reported sales of S500,000, total assets of $300,000, total stockholders' equity of $160,000, current assets of $100,000, current liabilities of $40,000, and cash of $30,000. In a common-size analysis of the balance sheet, cash would be shown as: The use of common-size analysis financial statements is an example of: The purchase of an office building by issuing long-term notes payable should be reported as a: Which of the following is a solvency ratio? Wilson Company had inventory of $660,000 and $540,000 on December 31,2016, and December 31, 2017, respectively. Cost of goods sold for 2017 was $4,200,000. Average days to sell the inventory is approximately: Which of the following statements is true?Explanation / Answer
1.b. may be larger than net income
2.d. 30000
3.a. acid test ratio
4.b. 10%
5.a. ratio analysis
6.d. cash outflow in the financing section of the statement of cash flows
7.c. Debt to assets ratio
8.c. 52.1
9.b. High asset turnover is a sign of efficient use of assets.