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What financial metric measures a company's ability to cover its short-term obligations with its most liquid assets and is calculated by excluding inventory from the current assets? A. Quick ratio B. Current ratio C. Inventory turnover ratio D. Return on assets ratio

A bank that is examining the ratio of annual costs of goods sold to average inventory, is examining which category of ratios?  a.Profit measures b.Operating efficiency measures c.Liquidity measures d.Expense control measures

When inventory is sold on account, which of the following is true? Operating cash flows are increased at the time of sale. Total assets are increased by the amount of the gross profit. Net income is increased by the amount of the sales price. Revenue is not increased until the cash is received. Both net income and liabilities are increased by the amount of the sales price.

19. An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as a(n) cash outflow from financing activities. addition to net income in arriving at net cash flow from operating activities. cash outflow from investing activities. deduction from net income in arriving at net cash flow from operating activities.

what is the impact on operating cash flows (increase or decrease) for changes in inventory levels (increase or decrease).

One of the purposes of the statement of cash flows is to ________. A to calculate inventory turnover B predict the future ability of a company to pay debts and dividends C evaluate the level of debt and leverage of a company D determine the operating income of a business

Identify the statement below that describes what the Days' sales uncollected ratio assesses. O It measures how quickly a company can convert its accounts receivables into cash. O It assesses the company's ability to pay its debts. O It is a useful in evaluating the liquidity of inventory. O It measures how profitable a company is when it sells it products.

Which of the following increases the cash conversion cycle? A.A decrease in inventory turnover B.An increase in the cash discount C.An increase in accounts payable D.A decrease in inventory level

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? a.a decrease in accounts payable b.an increase in inventory c.preferred dividends declared and paid d.a decrease in accounts receivable

Which of the following adjustments would NOT be made to net income when computing cash from operating activities? a.add an increase in Accrued Interest Payable b.deduct the purchase of store equipment c.add the reduction in Accounts Receivable d.add the decrease in Merchandise Inventory

An analyst has calculated a ratio using as the numerator the sum of operating cash fl ow, interest, and taxes and as the denominator the amount of interest. What is this ratio, what does it measure, and what does it indicate? C . Th is ratio is an operating profi tability ratio, measuring the operating cash fl ow generated accounting for taxes and interest and indicating a company’s liquidity.

View previous at Required information Assume a company prepares the statement of cash flows using the indirect method. The company purchases its Inventory on credit from suppliers. How should a decrease in accounts payable be reflected In the section that reconciles net income to cash flow from operating activitles? Multiple Choice It would be added if the section starts with net income and subtracted if it starts with a net loss It would be added in reconciling net income to cash flow from operafing activities It would be subtracted in reconciling net income to cash flow from operating activities A change in accounts payable does not affect the reconciliation of net income to cash flow from operating activities < Prev 15 of 15 Next Form 1040Sch...pdf 6 Form1040 Sch...pdf B1040 Sohedul...pdf Form8829 (1).pdf MacBook Air

The measure of a company’s ability to collect cash from its customers who purchase onaccount is thea. accounts payable turnover.b. cash conversion cycle.c. accounts receivable turnover.d. days’ payable outstanding.

These are the selected anaswer provide to select accordingly towards the cash statement: decrease in accounts payable, decrease in accounts receivable, decrease in inventory, decrease in prepaid insurance, decrease in salaries payable, depreciation expense, gain on sale of available for sale debt securities, gain on sale of equipment, increase in accounts payable, increase in account receivable, increase in inventory, increase in prepaid insurance, increase in salaries payable, loss of sale of available for slae securities, loss of sale of equipment, payment of cash dividends, payment of notes payable, purchase of equipment, sale of available for sale debt securities, sale of bonds payable, sale of equipment/   With these selection please out them into their designed areas to changes in oprerating assests and liabilities, cash flows from investing activities, cash flow from financing activities.

Which of the following is used in computing cash received from customers using the direct method? a.An increase in inventory b.A decrease in accounts receivable c.A decrease in inventory d.An increase in accounts payable

Which of the following events will cause a company’s current ratio to decrease?   a. The sale of inventory for credit (accounts receivable)   b. Issuing stock for cash   c. The sale of inventory for cash   d. Paying off long-term debt with cash

Which of the following should be subtracted from net income in computing net cash flows from operating activities using the indirect method? a.A decrease in inventory b.An increase in accrued expenses c.A decrease in prepaid expenses d.An increase in inventory

Caculate and the following ratios for Apple Inc. Inventory turnover Profit margin Return on assets Return on Equity