The balance sheet of Technology World reports total assets of $800,000 and $900,000 at the beginning and end of the year, respectively. The cash return on assets for the year is 20%. What is Technology World’s net operating cash flows for the year?

When the indirect method is used to prepare the operating activities section of the statement of cash flows, adjustments to net income include both income statement items and balance sheet items.

Horizontal analysis examines trends in a company:

A feature common to both stock splits and stock dividends is:

Treasury stock purchases reduce the number of shares outstanding, thereby increasing earnings per share.

We can use ratios to help evaluate a firm’s performance and financial position.

Ratios that compare an income statement account with a balance sheet account should express the balance sheet account as an average of the beginning and ending balances.

During 2024, Victory Solutions had the following cash flows: (1) received cash of $5,000 billed to a customer in 2023; (2) earned $20,000 of net income; (3) paid interest of $6,000 on a corporate bond issued; (4) paid dividends of $8,000 to its stockholders; (5) borrowed $40,000 from a local bank; and (6) purchased its own shares of common stock for $10,000. What is Victory Solutions’ net cash flows from financing activities for 2024?

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

Sammy’s Pizza had the following financial information for the year as follows ($ in millions): Net income$ 9,200Obtain loan from the bank4,600Depreciation expense1,800Purchase equipment5,400Increase in accounts receivable3,900Pay cash dividends2,200Increase in salaries payable1,700Sale of land3,500 Sammy’s Pizza would report net cash inflows (outflows) from financing activities in the amount of: