Rubble Company reported net income of $70,000 for the year. During the year, acc
ID: 2483144 • Letter: R
Question
Rubble Company reported net income of $70,000 for the year. During the year, accounts receivable increased by $6,000, accounts payable decreased by $5,000 and depreciation expense of $8,000 was recorded. Net cash provided by operating activities for the year is $67,000. $89,000. $63,000. $70,000. When equipment is sold for cash, the amount received is reflected as a cash inflow in the operating activity section. inflow in the financing activity section. inflow in the investing activity section. outflow in the operating activity section. Free cash flow equals cash provided by cash from operating activities less capital expenditures and cash dividends. cash from operating activities less cash dividends only. cash from Investing activities less capital expenditures and cash dividends. cash from operating activities less capital expenditures only. If a company has sales of $110 In 2016 and $154 m 2017, the percentage in sales from 2016 to 2017 is 140%. A current ratio of 1.2 to 1 indicates that a company's current assets liabilities.Explanation / Answer
(31) & (32): Questions not visible
(33) (d)
A non-cash transaction is not reported in main sections of cash flow statement.
(34) (a)
Net cash from operations = $(70,000 + 8,000 - 6,000 - 5,000) = $67,000
(35) (c)
(36) (d)
(37) False
% increase in sales = ($154 / $110) - 1 = 1.40 - 1 = 0.40, or 40%
(38) True
Current ratio (CR) = Current assets (CA) / Current liabilities (CL)
If CR = 1.2, it means, CA = 1.2 x CL.
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