Quiz Ch 03 – T/F Net Income and Cash Flow
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: A positive net income gives a positive cash flow from operations in that period.
True or false: A positive net income gives a positive cash flow from operations in that period.
True or false: Individuals are subject to personal tax on both dividends and interest payments distributed by companies.
True or false: Expanding inventories results in cash utilization, leading to a reduction in the firm’s net cash balance.
Which statement is accurate regarding a corporation that has reported negative net income in both the current and the previous fiscal year?
Regarding earnings distributed as dividends, who bears the responsibility for paying taxes?
Which statement accurately reflects the individual’s tax liability in the case where an individual’s income for the year consists of both dividend and interest payments?
The Floor Store maintained a constant cost per unit and selling price per unit over the past two years while increasing its sales quantity and keeping inventory levels steady. Which of the following financial ratios would be affected by this accomplishment?
What conclusion can be drawn about The Natural Pet’s financial performance, given that the company’s sales for 2020 and 2021 were $763,500 and $864,200, respectively, and its current accounts remained constant?
On an income statement, the net income is computed before subtracting what?