Austin Financial recently announced that its net income increased sharply from the previous year, yet its net cash provided from operations declined. Which of the following could explain this performance?
A. The company's dividend payment to common stockholders declined.
B. The company's expenditures on fixed assets declined.
C. The company's cost of goods sold increased.
D. The company's depreciation expense declined.
E. The company's interest expense increased.
Answer: D
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Answer the following statement(s) true (T) or false (F)
1. Emotional tagging occurs when the memories that form the basis for pattern recognition are tagged with emotions. 2. According to the study done by Duke University and the Kauffman Foundation, most successful founders of new businesses start their businesses in their twenties—people who wait until later become too set in bureaucratic molds to become innovative entrepreneurs 3. According to the CIP model, ideological leaders use a vision-based approach to help them focus on future outcomes, change, and a promise of a better future. 4. According to the study in which participants were randomly assigned to be either managers or clerks, the managers had an advantage in terms of emotional displays because their natural emotional reactions made them seem enthusiastic and motivated, whereas the emotional displays of the clerks made them seem bored and unmotivated.
Find the present value of the following stream of cash flows assuming an opportunity cost of 9 percent.
A) $85,791
B) $187,838
C) $65,213
D) $79,345
Answer the following statements true (T) or false (F)
1. A going concern issue requires a modification of the three-paragraph standard unqualified audit report (public company). 2. An opinion based in part on the report of another auditor requires an explanatory/emphasis-of-matter paragraph be added to the standard unqualified/unmodified audit report. 3. A basic assumption that underlies financial reporting is that an entity will continue as a going concern. 4. A change in accounting estimate is an example of an accounting change that affects comparability and requires an explanatory/emphasis-of-matter paragraph in the audit report. 5. A change in reporting entity is an example of an accounting change that affects comparability and requires an explanatory/emphasis-of-matter paragraph in the audit report.
Oslund Company manufactures only one product and uses a standard cost system. During the past month, the following variances were observed:
Direct labor rate variance$31,000favorableDirect labor efficiency variance 46,000unfavorableVariable overhead efficiency variance 28,000unfavorableStandard direct labor hours (DLH) per unit of output 5 Oslund applies variable overhead using a standard rate of $20 per standard DLH allowed. During the month, Oslund used 20% more DLHs than the total standard hours allowed for the units manufactured.What were the total standard DLHs (to the nearest whole number) for the units manufactured by Oslund Company during the past month?