【正文】 rest paid and dividends paid, respectively, are classified as operating or investing cash flows? Dividends paid Interest paid A. Operating Operating B. Operating Financing C. Financing Operating D. Financing Financing 6. Among the following items, which is added to ine for calculation of cash flows from operating activities in the indirect method? A. Increase of inventory B. Decrease of prepaid expenses C. Decrease of dividend paid D. Increase of accounts receivable 7. The following information was available for the B Inc. for 2022: Net ine 132 Exchanged equity for debt 34 Increase in inventory 42 Increase in accounts payable 30 Retirement of mon stock 45 Depreciation expense 25 What was B cash flow from operations? 3 A. 229 B. 145 C. 169 D. 184 8. Which of the following is NOT reported as a noncash transaction on a firm’s statement of cash flows? A. Exchanged equipment with a book value of $ million for equipment valued at $ million. B. Purchase of treasury stock C. Issued 5,000 shares of preferred stock for land with a fair value of $ million D. conversion of bonds payable into mon stock 9. A pany’s current ratio is . If the pany uses cash to retire notes payable that are due within one year, would this transaction most likely Increase or Decrease the current ration and asset turnover ratio, respectively? Current ratio Asset Turnover Ratio A. Increase Decrease B. Increase Increase C. Decrease Increase D. Decrease Decrease 10. The cash conversion cycle measures: A. the number of days cash is tied up in working capital B. the average collection period of accouts receivable C. the time to convert cash into profit D. none of above 11. Commonsize ine statements express a pany’s accounts relatively to: A. the aggregate economy B. the pany’s own assets C. the pany’s sales D. the pany’s cash collections from customers 12. During periods of sustained rising prices, pared with LIFO method, how will the FIFO method affect a pany’s COGS, ine and ine tax liability, respectively? A. increase, increase, increase B. increase, increase, decrease C. decrease, decrease, increase D. decrease, increase, increase 13. Selected financial data from Krandall, Inc.’s financial statements was as follows (in $): Inventory at Jan. 1 374,000 LIFO Reserve at Jan. 1 23,000 Inventory at Dec. 31 348,400 LIFO Reserve at Dec. 31 25,000 COGS 1,900,000 Net ine 170,000 Krandall uses the last in, first out (LIFO) inventory cost flow assumption. The tax rate is 35 percent. What is the Inventory turnover ratio if Krandall used first in, first out (FIFO) instead of LIFO ? A. B. C. D. 14. The same conditions as in Question 13. What is Inventory turnover ratio under the current cost method? 4 A. B. C. D. 15. The same conditions as in Question 13. If the ROE for Krandall is %, What is ROE if Krandall used first in, first out (FIFO) instead of LIFO ? A. % B. % C. % D. % 16. During periods of declining prices and stable inventory levels: A. LIFO COGS weighted average COGSFIFO COGS B.