Which of the following events would be classified as an investing activity on a statement of cash flows?
A) the payment of interest on a loan
B) the receipt of cash dividends on an available-for-sale investment
C) the issuance of common stock
D) the sale of an office building at its book value
D
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Westmoreland Company Following are selected data from Westmoreland Company's financial statements. 2017 2016 Current liabilities $230,000 $160,000 Long-term debt 120,000 320,000 Stockholders' equity 420,000 540,000 Cash payments for additions to plant and equipment 45,000 32,000 Net cash flow from operating activities 80,000 51,000 Interest and principal payments 12,000 8,000 Net operating cash
flows before interest and taxes 68,000 43,000 Net income 90,000 72,000 Interest expense 8,500 11,500 Income taxes 16,000 14,500 Dividends paid 15,000 30,000 Refer to the Westmoreland Company data. The company's debt service coverage ratio for 2017 indicates that the a. company's ability to pay principal and interest to creditors has declined. b. company has more net income available to allocate to stockholders after the payment of debt. c. company had significantly changes in current assets and current liabilities during the period. d. company generates about $2 of cash from operations to cover every $1 of debt.
A text introduction to a graphic should immediately precede the positioning of the graphic in a report
Indicate whether the statement is true or false
For good controls over cash payments, the person who orders goods from a supplier should always be different from the person who approves the payment
Indicate whether the statement is true or false
A company that uses the direct write-off method must still prepare a year-end adjusting entry to estimate its uncollectible accounts.
Answer the following statement true (T) or false (F)