The Statement of Cash Flows for Georgey Company for 2004

question 57

Multiple Choice

The statement of cash flows for Georgey Company for 2004 and 2005 is as follows:
$\begin{array}{lrr}&2004&2005\\ \text {Net income}&\$189&\$170\\ \text {Adjustments to reconcile net income to net cash provided by operating }\\ \text {activities:}\\\text { Depreciation and amortization } & 201 & 173 \\\text { Deferred income taxes } & 14 & (20) \\\text { Restructuring charges } & 80 & 90 \\\text { Accounts receivable } & 30 & 20 \\\text { Inventory } & (30) & 50 \\\text { Current liabilities } & 10 & 30 \\\text { Cash flow from operations } & 494 & 513\\\\\text { Sale of equipment } &200&300\\ \text { Purchase of equipment } &(130) &(120) \\ \text { Cash flow from investing } &70&180\\\\ \text { Dividends } &(120) &(130) \\ \text { Long-term debt } &(440) &(440) \\ \text { Cash flow from financing } &(650) &(570) \\\end{array}$



-Which of the following statements is correct?

• A)Restructuring is a major use of cash for Georgey.
• B)Accounts receivable increased in 2005.
• C)Depreciation is a major source of cash for Georgey.
• D)Major use of cash for paying long-term debt resulted in decreased leverage.

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Definitions:

Aging Population

An aging population denotes a demographic trend where the proportion of individuals aged 65 and over increases in a society, affecting healthcare, pensions, and workforce dynamics.

Stakeholder Needs

The requirements or expectations that stakeholders, including customers, employees, and investors, have of an organization.

Youth Workers

Individuals who provide guidance, support, and advocacy to young people through various programs and activities.

HR Audits

Comprehensive and systematic evaluations of an organization's Human Resource functions, policies, and practices to ensure they are efficient and compliant with legal standards.