Exhibit 55
Use the Information Below for the Following Problem(S)

question 55

Multiple Choice

Exhibit 5.5
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c c c c } \text { Stack } & \begin{array} { c } \text { 31-Dec-03 } \\\text { Price }\end{array} & \begin{array} { c } \text { 31-Dec-03 } \\\text { Shares }\end{array} & \begin{array} { c } \text { 31-Dec-04 } \\\text { Price }\end{array} & \begin{array} { c } \text { S1-Dec-04 } \\\text { Shares }\end{array} \\\hline W & \$ 75.00 & 10000 & \$ 50.00 & 20000 \\X & \$ 150.00 & 5000 & \$ 65.00 & 10000 \\Y & \$ 2500 & 20000 & \$ 35.00 & 20000 \\Z & \$ 20.00 & 25000 & \$ 50.00 & 25000\end{array}$$
Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003.
-Refer to Exhibit 5.5.Calculate the percentage return in the unweighted index (geometric mean) for the period Dec 31,2003 to Dec 31,2004.Assume a base index value of 100.Base year is Dec 31,2003.

• A) 19.25%
• B) 21.25%
• C) 51.25%
• D) 5.25%
• E) 100.25%

---

Definitions:

Investing Activities

Financial transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Cash Flow Statement

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Statement of Cash Flows

This document details the combined amount of cash a business gains from its day-to-day operations and outside investments, and the cash it expends on operating and investing activities over a particular period.

Indirect Method

A method of calculating cash flows from operating activities in the cash flow statement by adjusting net income for changes in non-cash accounts.