The Statement of Cash Flows for Georgey Company for 2004

question 7

Multiple Choice

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



-The cash flow from operations and cash flow from investing are both positive. Which of the following best describes the situation of Georgey?

• A)The cash flow statement would indicate there are no reasons for concern.
• B)Repayment of long-term debt indicates the company is becoming more profitable.
• C)Georgey appears to be liquidating assets of the company that may affect future profitability.
• D)Increased operating and investing cash flows in 2005, relative to 2004 indicate increased profitability of Georgey in 2005.

Recognize the methodological approaches used to label and study DNA molecules in research.

Understand the process and requirements for obtaining an enforceable security interest, including attachment and perfection.

Recognize the governance of security interests in personal property by the Uniform Commercial Code (UCC).

Identify the legal enforceability conditions of a security interest against the debtor and third parties.

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Definitions:

Nature

In development, nature refers to genes. Thus, traits, capacities, and limitations inherited at conception are nature.

Gene For Epilepsy

Gene for epilepsy indicates specific genetic variations that increase the likelihood of developing epilepsy, a neurological condition characterized by recurrent seizures.

Development

The process of change and growth in physical, emotional, intellectual, and social dimensions from birth through the lifespan.

Nurture

The process of caring for and encouraging the growth or development of someone or something.