question 16-18

QUESTION 16 Wildcat, Inc, purchases a machine on January 1, 2016 at a cost of $775,000. The machine will be depreciated over a 10 year useful Me by using the straight line method. The managers estimate that the machine will have a salvage value of $37,500 at the end of its useful life. What is the machine's carrying amount at December 31, 2017 O a $73,750 b. 5406,250 OC. $480,000 od. $553.750 QUESTION 17 How is it possible for a firm to be profitable and still go bankrupt? a. Earnings have increased more rapidly than sales. b. The firm has positive net income but has failed to generate cash from operations. oc. Net Income has been adjusted for inflation Od. Sales have not improved even though credit policies have been eased QUESTION 18 The first step in cash flow statement analysis should be to: O a evaluate the consistency of cash flows ob.determine operating cash flow drivers. oc identify the major sources and uses of cash