Investors who want to know the amount of cash a company has available for new opportunities, such as expanding into a new sales region, should analyze the company's ________
A) free cash flow
B) net cash flow from investing activities
C) acid ratio
D) earnings per share
A
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Rose, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Gary, suggests that Rose would save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which statement weakens Gary's argument?
A. Employees get more for their money when they receive insurance as a group benefit. B. Rose will get more take-home pay if she opts for a group insurance plan. C. Rose will not be eligible for other benefits if she does not enroll in a group insurance plan. D. Individual plans are typically offered only to senior executives. E. Rates for group insurance are typically lower than those of individual policies.
Under Chapter 11 of the Bankruptcy Act, a reorganization plan:
A. need not state which claims are impaired or adversely affected by the plan. B. must set forth how each creditor will be satisfied. C. need not treat all creditors in a given class the same. D. must give creditors and trustees shares in the corporation in exchange for the debt owed to them.
Canada Company needs to purchase a property to build their headquarters. An investor is willing to exchange land with a market value of $700,000 for shares of common stock. On the statement of cash flows, this transaction would be shown as ________.
A) investing activities B) non-cash investing and financing activities C) operating activities D) financing activities
On April 1, Year 1, Seaside Bookstore bought an insurance policy costing $48,000 that would insure the retail building for two years against fire loss. What asset account and what amount are recorded on the balance sheet at December 31, Year 1?
a. Prepaid Insurance, $30,000 b. Insurance Expense, $30,000 c. Prepaid Insurance, $18,000 d. Insurance Expense, $18,000 e. Insurance Expense, $9,000