Ally CoReported the Following for 2011 The Net Cash Flow from Operating Activities Was:
A)$365,000
B)$300,000

question 65

Multiple Choice

Ally Co.reported the following for 2011: $\begin{array} { cc }\text { Income Statement }&\text { Additional data }\\\begin{array}{lr}\text { Sales } & \$ 800,000 \\\text { Cost of sales } & 400,000 \\\text { Gross profit } & 400,000 \\\text { Cash operating expenses } & 100,000 \\\text { Amortization } & 40,000 \\\text { Loss on sale of land } &{20,000} \\\text { Net income } & \underline{\$ 240,000}\end{array}&\begin{array}{lr}\text { Dividends paid } & \$ 18,000 \\\text { Decrease in accounts payable } & 30,000 \\\text { Sale of land } & 40,000 \\\text { Increase in inventory } & 40,000 \\\text { Decrease in accounts receivable } & 5,000\end{array}\\\end{array}$
The net cash flow from operating activities was:

• A)$365,000
• B)$300,000
• C)$235,000
• D)$240,000

---

Definitions:

Investment

The allocation of resources, such as time, money, or effort, in hope of generating a future benefit or profit.

Strip Bond

A debt security that has had its main components, namely the coupon and the principal, separated to be sold individually as zero-coupon bonds.

Maturity

The set date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and payable.

Yield

The income return on an investment, such as the interest or dividends received, usually expressed as an annual percentage rate based on the investment's cost, its current market value, or its face value.