Demonstrate what is the cash from operating activities

Assignment Help Financial Accounting

Reference no: EM132656122

Problem 1: Which ratio measures a business's ability to adequately service its interest and leasing expenses?

Group of answer choices

Option 1: the profit margin on revenue ratio

Option 2: none of these

Option 3: the fixed-charges coverage ratio

Option 4: the total assets turnover ratio

Option 5: the quick ratio

Problem 2: The statement of cash flows shows the following information. What is the cash from operating activities?

Profit for the year $ 115,500
Depreciation 40,000
Adjustments in non-cash working capital accounts (25,000)

Group of answer choices

Option 1: $130,500

Option 2: None of these.

Option 3: $75,500

Option 4: $90,500

Option 5: $105,500

Problem 3: What is one of the adjustments required to calculate a company's cash flow?

Group of answer choices

Option 1: none of these

Option 2: adding depreciation expense to profit for the year

Option 3: adding profit from operations to interest income

Option 4: adding depreciation to profit before taxes

Option 5: adding accumulated depreciation to profit for the year

Reference no: EM132656122

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