3) Calculate Company Y's total asset turnover based on the following information for the current year:
|
Net income |
$100,000 |
|
Assets at the beginning of the year |
$800,000 |
|
Assets at the end of the year |
$830,000 |
|
Net sales |
$300,000 |
A) 10.3%
B) 12.3%
C) 32.8%
D) 36.8%
4) The following information was taken from the records of the Acme Company for the current year:
Net sales$510,000
Net income$145,000
Average total assets$330,000
Required: Use the DuPont analysis to measure the return on assets.
7.8 Learning Objective 7-8
1) Acquisition of assets will appear on the statement of cash flows as a financing activity.
2) Equipment is acquired by issuing a note payable for $57,000 and a down payment of $30,000. The statement of cash flows will report a:
A) $30,000 inflow in the operating activities section.
B) $57,000 inflow in the investing activities section.
C) $57,000 cash inflow in the financing activities section.
D) $30,000 cash outflow in the investing activities section.
3) Equipment with a book value of $8,000 is sold for $3,000 cash. The statement of cash flows will report a:
A) $3,000 cash inflow in the operating activities section
B) $3,000 cash inflow in the investing activities section.
C) $5,000 cash outflow in the operating activities section.
