Below is The Ranch Corporation's income statement and two balance sheets:The Ranch CorpThe Ranch CorpIncome Statement forBalance Sheet as at 30 Juneperiod ending 30 June 202210016151415401228Net salesCOGSDepreciationElectricity expenseInterest expenseTaxable incomeTaxesNet incomeInventoryPPETotal assets2022 202112 8320 300332 308Long term loan liabilities 150 150Contributed equity44 44Retained profits138 114Total L and OE332 308Note: All figures are given in millions of dollars ($m).Which of the following statements about the financial year from 30 June 2021 to 30 June 2022 is NOT correct?Select one:a. The increase in net working capital was positive because in net terms, more inventory was bought rather than sold.b. The increase in net working capital (ANWC) was $4m.c.Net capital expenditure (CapEx) was $20m.d. Firm free cash flow (FFCF or Cash flow from assets CFFA) was $19m.e. Net capital expenditure was positive because in net terms, more property, plant and equipment (PPE) was bought rather than sold.

Working capital is a financial metric that measures a company's short-term liquidity and ability to…

Below is The Ranch Corporation's income statement and two balance sheets: The Ranch Corp The Ranch Corp Income Statement for Balance Sheet as at 30 June period ending 30 June 2022 Net sales 100 COGS 16 15 14 15 40 12 28 Depreciation Electricity expense Interest expense Taxable income Taxes Net income Inventory PPE Total assets Long term loan liabilities Contributed equity Retained profits Total L and OE Note: All figures are given in millions of dollars ($m). 2022 2021 12 8 320 300 332 308 150 150 44 44 138 114 332 308 Which of the following statements about the financial year from 30 June 2021 to 30 June 2022 is NOT correct? Select one: a. The increase in net working capital was positive because in net terms, more inventory was bought rather than sold. b. The increase in net working capital (ANWC) was $4m. c. Net capital expenditure (CapEx) was $20m. d. Firm free cash flow (FFCF or Cash flow from assets CFFA) was $19m. e. Net capital expenditure was positive because in net terms, more property, plant and equipment (PPE) was bought rather than sold.

Below is The Ranch Corporation's income statement and two balance sheets: The Ranch Corp The Ranch Corp Income Statement for Balance Sheet as at 30 June period ending 30 June 2022 Net sales 100 COGS 16 15 14 15 40 12 28 Depreciation Electricity expense Interest expense Taxable income Taxes Net income Inventory PPE Total assets Long term loan liabilities Contributed equity Retained profits Total L and OE Note: All figures are given in millions of dollars ($m). 2022 2021 12 8 320 300 332 308 150 150 44 44 138 114 332 308 Which of the following statements about the financial year from 30 June 2021 to 30 June 2022 is NOT correct? Select one: a. The increase in net working capital was positive because in net terms, more inventory was bought rather than sold. b. The increase in net working capital (ANWC) was $4m. c. Net capital expenditure (CapEx) was $20m. d. Firm free cash flow (FFCF or Cash flow from assets CFFA) was $19m. e. Net capital expenditure was positive because in net terms, more property, plant and equipment (PPE) was bought rather than sold.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 32BEB

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