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What was the cash flow from operations

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Reference no: EM132861470

Problem 1: A corporation's dividend payout ratio is computed with dividends paid as the numerator, What is the denominator in the computation of this ratio?

a. Earnings before interest and taxes

b. Earnings before taxes

c. Net income

d. Addition to retained earnings

Problem 2: In a given year a firm produced $15,000 in net income and the depreciation expenses were $8,000. Over the year the inventory increased by $3,000, the accounts receivables decreased by $2,000 and the accounts payable increased by $5,000. What was the cash flow from operations based on the above information?

a. $25,000

b. $26,000

c. $27,000

d. $28,000

Reference no: EM132861470

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