Dragonstone Corp. had net income of $32,000. Accounts Receivable increased by $3,000; accounts payable decreased by $4,000. Depreciation expense for the year was $1,400. Additional transactions include: the purchase of land in exchange for stock $55,000; the sale of treasury stock $3,500; issued bonds $3,000; acquired a building by issuing a note $79,000. Using the indirect method, the net
increase (decrease) in cash for the year is:
A) $(19,400).
B) $(94,400).
C) $32,900.
D) $26,400.
C) $32,900.
Explanation: net income - A/R - A/P + depreciation + treasury stock + bonds; ex: $32,000 - $3,000 - $4,000 + $1,400 + $3,500 + $3,000 = $32,900
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Firms with tangible long-term assets and less predictable cash flows, such as auto manufacturers and steel companies, whose sales vary with changes in economic conditions, tend to use
a. a more nearly equal mix of long-term debt and shareholders' equity financing. b. a greater amount of long-term debt [80%] than shareholders' equity financing [20%]. c. a smaller amount of long-term debt [20%] than shareholders' equity financing [80%]. d. a greater amount of long-term debt [80%] than assets [20%]. e. a greater amount of shareholders' equity [80%] than assets [20%].
Path-goal theory argues that employees
a. appreciate directive behavior when it removes ambiguity and clarifies confusing situations b. never appreciate directive behavior c. with low self-esteem respond better to directive behavior d. with high self-esteem respond better to directive behavior
Under liquidity preference theory, which of the following is always true?
A. The forward rate is higher than the spot rate when both have the same maturity. B. Forward rates are unbiased predictors of expected future spot rates. C. The spot rate for a certain maturity is higher than the par yield for that maturity. D. Forward rates are higher than expected future spot rates.
Which of the following statements is true of quality improvement?
?a. It can always be optimized. b. It enhances the probability of organizational success.? c. It leads to the stagnation of customer needs and expectations.? d. It decreases customer responsiveness and resource effectiveness.