Decrease in net working capital for the period

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Reference no: EM131981343

1. An income statement:

a. records revenue only when cash is received for the product or service provided.

b. reveals the net cash flows of a firm over a stated period of time.

c. reflects the financial position of a firm as of a particular date.

d. shows the revenue and expenses based upon selected accounting methods.

2. A decrease in net working capital for the period:

decreases the cash flow from assets.

indicates a firm has sold some of its long-term assets.

is a cash inflow for the firm.

is caused by a firm purchasing additional fixed assets.

3. Deer, Inc. has $16,000 in total assets, depreciation of $3,230, and interest of $2,200. The total asset turnover rate is 1.8. Earnings before interest and taxes are equal to 30 percent of sales. What is the cash coverage ratio?

 

Reference no: EM131981343

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