Question
Answered step-by-step
1 During the quarter ended 3/31/2015, Clarke Biscuits Inc. collected $100 of cash from
customers, paid $60 of cash to suppliers, paid $20 of cash to employees and other creditors,
and recorded $10 of depreciation expense. There were no other cash flows related to
operating activities.
What was Clarke's Cash Flow from Operations during the quarter ended 3/31/2015?
$30
$10
$20
$(20)
$100
1 point
2.
Question 2
During 2015, Rindal Vinyards Inc. had EBITDA of $1000, Depreciation and Amortization
Expense of $200, Interest Expense of $100, and Tax Expense of $50. What was Rindal
Vinyards' Net Income in 2015?
$1000
$1250
$750
$650
$950
1 point
3.
Question 3
Geller Florist Inc. had the following transactions during 2015:
Purchased a $200,000 warehouse with $50,000 cash and a $150,000 mortgage from a bank.
Raised $100,000 from selling new shares of stock to investors. The cash was used to buy
land to grow tulips.
Sold an old building for $50,000 (and suffered a loss on sale of $5,000) and used the cash to
buy a new truck.
What is the net impact of these transactions on Geller's Cash from Financing Activities
during 2015?
$100,000