PrincManageACCT(WEB)-Assignment 1-Summ 1-2018- Protected View - Saved to this PC

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PrincManageACCT(WEB)-Assignment 1-Summ 1-2018- Protected View - Saved to this PC References Mailings Review View Help ? T rom the Intenet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. st 14, 2018, most features of Word will be disabled. Reactivate Enable Editing Total points 30 (3 points each) 1. Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements-Decrease in Prepaid Expenses- indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following: a. b. c. Add to net income to arrive at net cash flows from operating activities Subtract from net income to arrive at net cash flows from operating activities Not used to adjust net income to calculate net cash flows from operating activities 2. A bond indenture is a. a bond that is secured by specifie assets of the issuing corporation b. the agreement between the issuing corporation and the bondholders c. a bond that is unsecured d. a bond that has past due interest payments. 3. The following information pertains to Jasmin Corporation. Assume that all balance sheet amounts represent both average and ending figures. Jasmin Corporation Partial Balance Sheet December 31, 2009 Liabilities and Stockholders' Equity Current assets Total assets urrent liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity $ 20,000 80,00 60,000 90,00 Jasmin Corporation Income Statement For the Year Ended December 31, 2009

Explanation / Answer

1 Subtracted from Net Income to arrive at income from operating activities

2. Is an agreement between Issuer & Bondholder

3. Return on Equity-Net Income/ Shareholder Equity 15000/150000*100= 10% (b)

4. Debt to equity ratio= Debt/ Equity= 90000/150000=60% (d)

5. Beginning Inventory + Purchases during the period – Ending Inventory.1060350 (b)

7. 6000 (b)

8. Cost of Good sold (a)

9. 1409500 (d)

10. Financing Activities Section (d)

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