The Statement of Cash Flows for Georgey Company for 2004

question 62

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)Inventory was a use of cash for Georgey in 2005.
• B)Current liabilities increased in 2005.
• C)Georgey has a net outflow of cash in 2005.
• D)Restructuring charges were a use of cash for Georgey in 2004.

---

Definitions:

Product-Oriented Production

A production strategy that focuses on producing goods in large volumes with minimal variation, typically associated with mass production environments.

Process Strategy

An organization's approach to transforming resources into goods and services.

Four R's of Sustainability

These represent Reduce, Reuse, Recycle, and Recover, guiding principles to promote sustainable practices by minimizing waste and maximizing resource efficiency.

Recycling

The process of collecting and processing materials that would otherwise be thrown away as trash and turning them into new products.