Excerpts from Nationwide Company’s December 31, 2024 and 2023, financial statements are presented below: 20242023Accounts receivable$ 88,000$ 78,000Inventory93,00075,000Net sales450,000377,000Cost of goods sold263,000226,000Total assets805,000760,000Total stockholders’ equity485,000415,000Net income75,00055,000 What is the gross profit ratio for 2024?Note: Round your answer to one decimal place.

Using the indirect method, we begin with net income and then list adjustments to net income in order to arrive at operating cash flows.

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?