Bloom's Garden Center Company

question 44

Multiple Choice

Bloom's Garden Center Company
Selected data from the financial statements of Bloom's Garden Center are provided below.

- Refer to the selected data provided for Bloom's Garden Center Company. Which of the following would result from a horizontal analysis of Bloom's cash and cash equivalents?

• A) Cash and cash equivalents increased by $13,000 or 20.97% during 2012.
• B) Cash and cash equivalents increased by $13,000 or 30.79% during 2012.
• C) Cash and cash equivalents are 11.03% of total assets in 2012.
• D) The free cash flow is $653,800 in 2012.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual installments.

Salvage Value

The anticipated value left in an asset at the conclusion of its serviceable life, employed in the depreciation calculation.

Useful Life

The estimated period during which an asset is expected to be usable for its intended purpose, affecting its depreciation calculation.

Journal Entries

The recordation of a transaction in an accounting journal that impacts at least two accounts, indicating the debit and credit amounts.