Janex Corporation Had OCF of $250, Net Capital Spending of $500

question 216

Multiple Choice

Janex Corporation had OCF of $250, net capital spending of $500 and change in net working capital of $150. Given this information, determine its cash flow from assets.

• A) $400
• B) $800
• C) $(400)
• D) $(800)
• E) $150

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Definitions:

Adequate Consideration

Something of value exchanged between parties in a contract, which is fairly sufficient and corresponds to the terms and obligations agreed upon.

Arbitration Clause

A contract provision requiring disputes to be resolved by arbitration rather than in court.

Disguised Gift

A transaction or transfer of property where the true intent is to give the item rather than sell it at its full value.

Nominal Consideration

A token amount in a contract to validate it, which may not necessarily reflect the true value of the contract's subject matter.