Security Analyst Obtained the Following Information from Prestopino Products' Financial

question 17

Multiple Choice

security analyst obtained the following information from Prestopino Products' financial statements: • Retained earnings at the end of 2009 were $700,000, but retained earnings at the end of 2010 had declined to $320,000.
• The company does not pay dividends.
• The company's depreciation expense is its only non-cash expense; it has no amortization charges.
• The company has no non-cash revenues.
• The company's net cash flow (NCF) On the basis of this information, which of the following statements is CORRECT?

• A)Prestopino had negative net income in 2010.
• B)Prestopino's depreciation expense in 2010 was less than $150,000.
• C)Prestopino had positive net income in 2010, but its income was less than its 2009 income.
• D)Prestopino's NCF in 2010 must be higher than its NCF in 2009.
• E)Prestopino's cash on the balance sheet at the end of 2010 must be lower than the cash it had on the balance sheet at the end of 2009.

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Definitions:

Hypothalamus

A region of the brain below the thalamus, responsible for regulating many vital bodily functions including hunger, thirst, temperature, and emotional responses.

Basal Metabolic Rate

The rate at which the body uses energy while at rest to maintain vital functions such as breathing and keeping warm.

Blood Glucose Levels

The concentration of glucose in the blood, which is a critical aspect of metabolic health and energy production.

Insulin

A biochemical agent generated by the pancreas, critical for managing blood glucose concentrations by assisting glucose's movement into various tissues.