1.What is the amount of 'Cash Flow from Investing Activities' as calculated in the Statement of Cash Flows for Year 1 for Lowell Inc using the information in the sheet attached here?

A. (754) B. (309) C. (388) D. (375)

2.What is the amount of 'Cash Flow from Financing Activities' as calculated in the Statement of Cash Flows for Year 1 for Lowell Inc using the information in the sheet attached here?

A. (326) B. 14 C. (511) D. (312)

 

Transcribed Image Text:

INCOME STATEMENT Year 0 Year 1 Revenue 5,323 6,477 Cost of goods sold 2,943 2,380 3,568 2,909 Gross profit Depreciation Other expenses 197 280 1,410 1,637 Operating income 773 992 Interest Expense 110 210 Income before taxes 663 782 Provision for income taxes @ 21% 139 164 Net income 524 618 BALANCE SHEEET ASSETS Year 0 Year 1 Cash and marketable securities 191 139 Short-Tem Investments 749 754 Receivables 736 805 Inventories 278 280 Total Current Assets 1,954 1,978 Total Fixed Assets 2,890 2,980 Total assets 4,844 4,958 INCOME STATEMENT Year 0 Year 1 Revenue 5,323 6,477 Cost of goods sold 2,943 2,380 3,568 2,909 Gross profit Depreciation Other expenses 197 280 1,410 1,637 Operating income 773 992 Interest Expense 110 210 Income before taxes 663 782 Provision for income taxes @ 21% 139 164 Net income 524 618 BALANCE SHEEET ASSETS Year 0 Year 1 Cash and marketable securities 191 139 Short-Tem Investments 749 754 Receivables 736 805 Inventories 278 280 Total Current Assets 1,954 1,978 Total Fixed Assets 2,890 2,980 Total assets 4,844 4,958

Answer rating: 100% (QA)

1 Option D is correct 375 Cash Flow from Investing Activi... View the full answer