omputing cash generated from operating activities is:

A. the same for both the direct and indirect methods.

B. different in that the indirect method considers depreciation.

C. different in that the direct method considers depreciation.

D. none of the above.

The following information relates to Woolf Unlimited for the past two years.

Account	Current year	Prior year
Net sales (all credit)	$237,250	$180,000
Cost of goods sold	$115,000	$110,000
Gross profit	$122,250	$ 70,000
Income from operations	$ 32,000	$ 30,000
Interest expense	$ 2,000	$ 7,000
Net income	$ 24,000	$ 18,000
Cash	$ 22,000	$ 14,000
Accounts receivable, net	$ 25,000	$ 31,000
Inventory	$ 56,000	$ 44,000
Prepaid expenses	$ 2,000	$ 1,000
Total current assets	$105,000	$ 90,000
Total long-term assets	$150,000	$175,000
Total current liabilities	$ 60,000	$ 90,000
Total long-term liabilities	$ 22,000	$ 78,000
Common stock, no par,2,500 shares, market value $96 per share	$ 40,000	$ 40,000
Retained earnings	$133,000	$ 57,000

What is the acid-test ratio for the current year?

A. 0.52

B. 0.75

C. 0.78

D. 2.30

A payment of interest on a loan would be considered a:

A. cash outflow from investing activities.

B. cash outflow from operating activities.

C. cash outflow from financing activities.

D. cash outflow from depreciation.

Which of the following is the percentage change from Year 2 to Year 3?

A. 24.00%

B. 55.00%

C. 124.00%

D. 25.00%