9. Which of the following questions from investors is best answered from the Inc

Question

9. Which of the following questions from investors is best answered from the Income Statement? a. What is the company's financial position at the end of the reporting period? b. How much profit did the company make during the reporting period? c How did the company decide to use its profits from the reporting period? d. How much cash did the company generate and spend during the reporting period? 10. Using the Balance Sheet shown at the end of this exam, what is the firm's Working Capital as of Dec 31, 2017? a. $33,803,700,000 b. $3,268,000,000 C. $5,327,200,000 d. $2,436,600,000 e $2,890,600,000

Explanation / Answer

9.

B

It is the income statement that best explains the profit earned by the company in a given reporting period. But, it does not explain the utilization of profit into buying different items. Exact financial position is explained by the balance sheet.

10.

D.

Working note:

Working capital = current assets – current liabilities

Working capital = 5327.2 - 2890.6 = $2436.6 Million

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