Under the indirect method, an increase in accounts payable is added to net income to arrive at net cash flows from operating activities.

Which of the following is a sign that a company cannot quickly turn its receivables into cash?

Cash return on assets indicates the amount of operating cash flow generated for each dollar invested in assets.

Excerpts from Nationwide Company’s December 31, 2024 and 2023, financial statements are presented below: 20242023Accounts receivable$ 80,000$ 72,000Inventory84,00070,000Net sales (all credit)400,000372,000Cost of goods sold254,000216,000Total assets850,000810,000Total stockholders’ equity500,000450,000Net income75,00056,000 What is the inventory turnover ratio for 2024?Note: Round your answer to one decimal place.

Financial information for Accessories Unlimited includes the following selected data: Net income (in millions)$ 150Shares outstanding (in millions)300Stock price$ 20.00 What is the company’s earnings per share?

A company resells 400 shares of its own common stock for $20 per share. The company had acquired these shares two months before for $15 per share. The resale of this stock would be recorded with a:

The board of directors of Capstone Incorporated declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 5,000 shares held as treasury stock.What is the entry when the dividends are declared?TransactionAccount TitleDebitCreditA.Dividends9,000 Dividends Payable 9,000B.Dividends9,000 Cash 9,000C.Dividends12,000 Dividends Payable 12,000D.Dividends12,000 Cash 12,000

Consider the following items:(a) Decrease in accounts receivable(b) Issuance of common stock(c) Increase in interest receivable(d) Purchase of land(e) Decrease in accounts payable(f) Gain on the sale of equipment(g) Depreciation expense(h) Payment of dividends(i) Decrease in utilities payable(j) Increase in inventoryHow many of these items would be added to net income when using the indirect method to prepare the operating activities section of the statement of cash flows?

We report dividends received as a financing activity.

On December 2, Coley Corporation acquired 1,000 shares of its $2 par value common stock for $27 each.On December 20, Coley Corporation resold 400 shares for $15 each. Which of the following is correct regarding the journal entry for the resold shares?